KATHMANDU: Nepal News presents today’s snapshot of Nepal’s economic activities. Here’s a concise update on key market movements, policy developments, and financial trends shaping the economy:

Government Revives Concessional Loan Scheme After Two-Year Halt, Clears NPR 10 Billion in Interest Arrears:
The government has resumed its long-stalled concessional loan program, settling nearly NPR 10 billion in overdue interest payments to banks. Finance Ministry spokesperson Tank Prasad Pandey said procedural requirements have been completed, and Nepal Rastra Bank will soon instruct financial institutions to relaunch lending. Banks had informally halted concessional loans for two years due to unpaid subsidies.

Under the revised guidelines, loans include: agriculture and livestock (up to NPR 50 million), women entrepreneurship (NPR 2.5 million), returnee migrant self-employment (NPR 2 million), educated youth projects (NPR 2 million), Dalit entrepreneurship (NPR 2 million), startups (NPR 2.5 million), industry boiler replacement (NPR 5 million), and disaster-hit housing (NPR 500,000). The new policy reduces the subsidy from 5% to 3% interest support, with repayment terms capped at five years, aiming for greater transparency and reduced misuse.

Falling Deposit Rates Drive Nepali Investors Toward Debentures as Secondary Market Prices Surge:
Debentures are becoming increasingly attractive to Nepali investors as bank deposit rates continue to fall. According to Nepal Rastra Bank data, average fixed deposit interest dropped from 9.98% in July 2023 to just 5.79% by mid-2025. In contrast, many debentures yield effective returns above 8–10%, nearly double deposit rates, pushing secondary market prices above NPR 1,200 per unit in some cases. Analysts note that as interest rates decline, bond prices rise, making debentures a preferred investment tool. With most listed debentures now trading above NPR 1,000, investors are shifting funds from fixed deposits to higher-yielding corporate bonds.

Nepal Insurance Authority Faces Leadership Turmoil:
Nepal Insurance Authority has had five chairpersons in one year, creating administrative instability. Surya Prasad Silwal left before completing his term, followed by Madan Dahal, then Sharad Ojha, who faced various pressure to force resigned. Sebantak Pokharel briefly served, and Janak Sharma, former Deputy Director General of the Inland Revenue Department, is the current chair. Staff have raised concerns with Finance Minister Rameshwar Khanal about the impact on daily operations. Ojha’s dismissal is under Supreme Court review and already issued the temporary interim order, he remains unable to attended the office. This rapid turnover has disrupted governance and raised questions about continuity and regulatory oversight in Nepal’s insurance sector.

Finance Ministry Confirms Money Laundering Probe Into Undisclosed Cash Found at Residences of Former PM Deuba, Other Top Leaders:
The Finance Ministry has confirmed investigations under the Asset (Money Laundering) Prevention Act, 2008 into large sums of undisclosed cash reportedly stashed at the residences of former PM Sher Bahadur Deuba and other senior political leaders. In a statement, the ministry clarified that while legally earned, source-verified funds can be held and used without restriction, hidden or unexplained cash holdings are under scrutiny. The probe gained urgency after the Gen-Z protests in late August, when arson revealed burnt or hidden bundles of currency. The ministry also urged the public to avoid hoarding large amounts of cash, stressing the legal requirement to conduct transactions above NPR 1 million via banking channels and encouraging wider adoption of electronic payments.

Dashain Supplies Stuck as China Restricts Cargo Through Tatopani Border:
Consumers and traders in Nepal face shortages of Dashain goods after China failed to send sufficient cargo through the Tatopani border. The crossing, blocked by landslides for two months, reopened on August 22, but only 5–7 containers are arriving daily instead of the usual 25–30, according to Trans Silk Terminal officials. Traders report nearly 200 containers stuck in China, with no clear explanation from Chinese authorities. Nepal-China Chamber of Commerce members blame weak customs coordination, while officials cite staffing shortages on the Chinese side. Businesses warn of festival shortages and urge the government to push Beijing for smoother cargo flow.

Debt Repayments Now Outpace Education and Health Spending in Nepal:
In FY 2081/82, Nepal spent NPR 305.37 billion on debt servicing—more than its expenditure on education (NPR 203 billion) or health (NPR 100 billion). This marks the second consecutive year where debt obligations surpassed any single public service sector. Debt repayment has become the largest fiscal outflow, consuming 23% of total revenue last year, well above the global risk threshold of 10%. Nepal’s total public debt stands at NPR 2.22 trillion (42% of GDP), a manageable ratio, yet weak revenue growth and poor loan utilization have made repayment burdensome. Since the 2015 earthquake and COVID-19 pandemic, borrowing has surged, but limited returns from projects and reliance on costly loans have raised concerns from international donors.

Three Nepali Films Release During Dashain but Struggle at Box Office:
Three Nepali films—Balidan, Haribahadurko Jutta, and Maitighar—were released nationwide from October 13 (Phulpati) to mark the Dashain festival. Despite the festive holidays, box office performance has been below expectations. According to the Film Development Board’s Box Office 2 Cinema app, Balidan, directed by Santosh Sen and starring Saugat Malla and Richa Sharma, collected NPR 10.56 million in two days. Haribahadurko Jutta, featuring Haribansha Acharya in his iconic role and directed by Dipendra K. Khanal, earned NPR 5.96 million. Meanwhile, Maitighar, directed by Milan Tamang, grossed NPR 3.86 million in two days. Industry observers link festival releases to higher audience turnout hopes.

Over 10,000 Chickens Die in Kailali Poultry Farm After Power Supply Fault:
More than 10,000 chickens died at APV Agro Poultry Farm in Lamkichuha-7, Kailali, after an electrical fault disrupted the power supply. Farm operator Durga Bohora said the incident, caused by a misaligned “phase sequence” on Friday night, wiped out years of investment. The farm, established in 2021 with NPR 70 million, had been housing 12,000 chickens and earning up to NPR 1.5 million monthly from egg production. Technician Dhirendra Shah explained that the fault caused fans to malfunction, filling sheds with ammonia gas that suffocated the birds. Losses are estimated at over NPR 10 million, with no insurance coverage.

Sugarcane Cultivation Declines in Kailali Amid Lack of Subsidies and Market Access:
Sugarcane farming in Kailali, once widely cultivated as a cash crop, is steadily shrinking due to the absence of subsidies, farming support, and assured markets. According to the Agriculture Knowledge Center, cultivation area has dropped from 700 hectares two decades ago to just 236 hectares today. Farmers say neither the provincial government nor local authorities have provided seed, fertilizer, or equipment subsidies. With the closure of Chuhama-based Basuling Sugar Mill, demand has plummeted, forcing many growers to switch to alternative crops. Experts warn that without subsidies, improved seeds, training, and market assurance, farmers will continue abandoning sugarcane farming.

Gen-Z Uprising Causes Nearly NPR 1 Billion Damage to Sudurpaschim CM’s Office and Provincial Assembly:
The Gen-Z movement’s arson and vandalism caused an estimated NPR 974.5 million in damage to the Sudurpaschim Chief Minister and Council of Ministers’ Office. Seven government cars, 13 motorcycles, and three scooters—including vehicles used by CM Kamal Bahadur Shah and key ministers—were destroyed. The blaze gutted the first and second floors of the CM’s office, incinerating furniture, electronics, and documents, leaving only limited administrative records intact. Looting was also reported. With the CM’s office uninhabitable, Shah has shifted operations to his residence. The Provincial Assembly building was also devastated, with its chamber, committee offices, and equipment reduced to ruins, making sessions impossible for now. Speaker Bhim Bahadur Bhandari said meetings may resume only after repairs around Dashain–Tihar. Several other ministries and government offices in Dhangadhi also faced arson attacks.

Huawei’s Grip on Nepal Telecom Billing Contract Halted After Change in Government:
Huawei’s bid to secure full control of Nepal Telecom’s billing system has been stalled following a change in government. Under former PM KP Sharma Oli and ICT Minister Prithvi Subba Gurung, the tender was reportedly tailored to favor Huawei, with plans to open financial proposals and award the contract immediately. However, new Minister Jagadish Kharel intervened, halting the process for further review. Sources say Secretary Radhika Aryal, initially resistant, was also involved in the push to finalize the deal. Huawei’s proposal raised concerns of vendor lock-in and irregularities in procurement. The Ministry has now announced the bid opening is postponed until further notice.

Nepal Life Rejects Life Insurance Claim Over Undisclosed Pre-Existing Condition:
Hira Devi Shah of Biratnagar purchased a 10-year life insurance policy from Nepal Life Insurance in 2078 Kartik for NPR 1 crore, paying around NPR 10 lakh as the first premium. Two months later, she passed away, and her nominee filed a claim. Investigation revealed Shah had been treated for Motor Neuron Disease at Birat Medical College since 2078 Ashoj 31, prior to the policy, which was not disclosed in the proposal. Citing non-disclosure and breach of the principle of utmost good faith, Nepal Life denied the claim. The Insurance Board upheld the decision on 2080 Chaitra 18, affirming the insurer’s right to reject claims when pre-existing health conditions are concealed.