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:

Despite Home Minister’s Order, Bhotekoshi Hydropower Remains Shut for a Month:

Despite directives from Home Minister Om Prakash Aryal, the 45 MW Bhotekoshi Hydropower Project in Sindhupalchok remains closed for over a month. The shutdown began after a group claiming to represent the Gen-Z movement demanded 10 percent free shares in the project. Aryal had instructed the Chief District Officer to ensure its immediate resumption, but negotiations between the company and locals are still ongoing. The District Administration Office has called both sides for talks on Sunday. Independent Power Producers’ Association (IPPAN) officials have urged the government to act against extortion under the Gen-Z banner, warning of rising threats to investors.

Minister Kulman Ghising Prioritizes Relief and Reconstruction in Flood-Hit Ilam:

Minister for Physical Planning and Transport, Kulman Ghising, emphasized the government’s commitment to immediate relief and durable reconstruction following recent floods and landslides in Ilam. After inspecting affected areas—including Rong Rural Municipality, Suryodaya Municipality, and Ilam Municipality—he interacted with residents from Ilam, Sandakpur, Maijogmai, and nearby settlements and assessed damaged road infrastructure. The disasters, triggered by late monsoon rains on October 4, caused substantial loss of life and property, prompting the government to declare Ilam a crisis-hit zone for three months. The current death toll in the district stands at 39, highlighting the severity of the calamity.

Insurance Claims from Gen Z Protests Reach Over Rs 23 Billion, Only Rs 1.58 Billion Paid So Far:

The Nepal Insurance Authority has reported total insurance claims worth Rs 23.22 billion resulting from damages during the Gen Z protests, as of October 9 (Ashoj 23). The claims, filed under 3,099 cases across 14 non-life and 4 micro-insurance companies, have seen payments of only Rs 1.58 billion so far. Property insurance accounts for the largest share—Rs 19.06 billion from 653 claims—followed by motor insurance with Rs 3.41 billion from 2,206 claims. Additional claims include Rs 380 million under engineering and contract risks, Rs 16.3 million in transport, and Rs 353.7 million in other categories. Payment processing remains ongoing.

Imports Resume at Tatopani Border as Rasuwa Remains Closed After Flood Damage:

Imports through the Tatopani border have surged after Dashain, with over 20 containers of goods—mainly garments and fruits—entering Nepal daily, according to the Tatopani Customs Office. The Kodari landslide that had blocked the route for nearly two months has now been cleared under the direction of Infrastructure Minister Kulman Ghising, allowing smooth trade flow. However, the Rasuwa border point remains closed since July 7 after floods destroyed the bridge over the Lhende River. Although China is building a Bailey bridge expected to be ready within 10 days, severe road damage between Syafrubesi and Rasuwagadhi may delay reopening until after Tihar.

Government Estimates Rs. 12.38 Billion Needed for Road and Infrastructure Reconstruction After Floods:

The government estimates Rs. 12.38 billion will be required to repair roads, bridges, and related infrastructure damaged by floods and landslides caused by heavy rains on October 4–6. The Ministry of Physical Infrastructure and Transport said 263 locations across the country were affected, with major damages on the Mechi, Kanti, Koshi, Mid-Hill, and Kaligandaki highways. Reconstruction of 17 permanent bridges and Bailey bridges is estimated at Rs. 5.32 billion. The energy sector also suffered, with 32 hydropower projects affected and 1,500 metres of river embankments eroded. The Ministry of Agriculture is collecting preliminary data on losses in crops and livestock.

Cooperative Authority Seeks Details of 100 Largest Depositors, Members, and Borrowers:

The National Cooperative Regulatory Authority has directed all cooperatives to submit detailed records of their 100 largest depositors, members, and borrowers amid growing concerns over financial irregularities in the sector. The move comes as debates over unaccounted “black money” intensify, with suspicions that some individuals may be using cooperatives to avoid scrutiny faced in banks. The authority has also issued a circular mandating that all cooperatives engaged in savings and loan activities register under its supervision. Through the amended Registration and Record-Keeping Standards 2082, all savings and credit cooperatives will now be formally regulated by the national authority.

Government Simplifies Land Record Restoration After Gen Z Protests Damaged Land Offices:

The government has simplified procedures to restore land ownership records (sresta) destroyed during the Gen Z protests on September 8–9. Following public concern over earlier notices from land revenue offices, the Ministry of Land Management instructed offices to reissue records based on available ownership documents such as land titles, citizenship, and field maps. If digital and manual records match, new sresta can be printed and certified; if not, verification through the Document Management System (DMS) or local authority recommendation will be used. The Department has directed 10 major land offices, including in Kathmandu, Kaski, Rupandehi, and Banke, to provide easy and citizen-friendly services.

Kathmandu Bans Imported Flowers During Tihar to Support Domestic Farmers:

Kathmandu Metropolitan City has prohibited the sale of imported flowers and flower products during the upcoming Tihar festival to promote local farmers. From October 17 to 22, the city will set up 32 flower supply centers at locations including NB Centre, Phoenix Tower, Sifal Chaur, Chabahil Ganeshthan, KL Tower, Old Baneshwor, and Star Mall. The Metropolitan Police Force has warned that imported flowers will be confiscated. The Floriculture Association of Nepal, led by Rajesh Bhakta Shrestha, supported the initiative and will host the 18th Godavari Chrysanthemum Flower Competition from October 15 to 18. Domestic flower production is reportedly sufficient to meet market demand.

Nepal Rastra Bank Eases Share-Backed Lending and Reduces Mandatory Holding Period to Six Months:

Nepal Rastra Bank has amended its Unified Directives, easing share-backed lending and relaxing restrictions on share trading. The central bank has reduced the mandatory holding period for purchased shares from one year to six months and removed the rule limiting sales to 20% of primary capital within a fiscal year. It has also scrapped the previous cap of Rs 250 million per individual for margin loans across banks and financial institutions. The decision, based on recommendations from the Capital Market Reform Taskforce, is expected to increase liquidity and investor participation in Nepal’s capital market, making share investments more flexible and accessible.

Young Craftsman Chitre Badi Keeps Nepali Madal Tradition Alive During Festivals:

Seventeen-year-old Chitre Badi from Pachurkha, Ghorahi Sub-Metropolitan City, is keeping the traditional Nepali craft of madal-making alive. Festivals like Dashain and Tihar drive high demand, with Badi making four to five new madals daily and repairing old ones for celebratory dances, particularly the Tharu community’s Sakhya-Paiya dance. He works from morning till evening to meet orders, charging Rs 1,000–2,000 per new drum depending on size, while repair costs vary by condition. With dedication and skill, Badi continues to preserve this cultural heritage, ensuring that traditional music and craftsmanship remain vibrant during Nepal’s festive seasons.

Nepal Chamber of Commerce Urges Government to Sustain Export Subsidies, Ease Business Policies:

The Nepal Chamber of Commerce (NCC) has urged the government to maintain export subsidies, warning that halting support could further strain Nepal’s struggling export sector. In meetings with Industry Minister Anil Kumar Sinha and Finance Minister Rameshore Prasad Khanal, NCC President Kamlesh Kumar Agrawal emphasized creating an investment-friendly environment, ensuring industrial security, and simplifying business registration, tax, and licensing processes. The chamber welcomed measures like concessional loans, customs duty exemptions, and faster insurance claim settlements post-Gen Z protests, and urged quick credit access for youth entrepreneurs. NCC also recommended capping customs at 25%, exempting excise duty on domestic goods, and maintaining higher VAT rates.

Gautam Buddha International Airport to Resume Regular International Flights After Six-Month Halt:

After nearly six months without international operations, Gautam Buddha International Airport in Bhairahawa is set to resume regular flights. Thai AirAsia will begin twice-weekly flights between Bhairahawa and Thailand starting October 12 (Ashoj 26), according to airport general manager Pratap Babu Tiwari. Other airlines, including Jazeera Airways, are also preparing to start services—likely after the Tihar festival. The airport, inaugurated in May 2022, had seen temporary operations from four foreign carriers during Tribhuvan Airport’s maintenance earlier this year. The prolonged suspension severely hit local tourism and hotel businesses, which had invested around Rs 100 billion expecting regular international connectivity.

Nepal Rastra Bank Revokes Licenses of Prabhu Technology and FirstPay Technology:

Nepal Rastra Bank has revoked the licenses of one payment service provider and one payment system operator. The central bank cancelled the payment service license of Prabhu Technology Pvt. Ltd., operator of the PrabhuPay digital wallet, citing non-renewal as per Section 13(4) of the Payment and Settlement Act, 2075. Prabhu Technology had obtained its license on February 23, 2020. Similarly, the license of FirstPay Technology Pvt. Ltd., a payment system operator licensed on February 25, 2020, has been revoked under Section 13(6) of the same Act. NRB has asked concerned users or institutions with pending transactions to contact the companies within 30 days.

Heavy Rains and Winds Destroy Banana Farms in Sunsari, Farmers Face Huge Losses:

Continuous rainfall, floods, and strong winds have devastated banana plantations in Sunsari district, destroying hundreds of bighas of crops. Farmers from Inaruwa Municipality-9 and Bhokraha Narsingh Rural Municipality-2 reported total losses, with individual damages ranging from Rs. 100,000 to Rs. 1.3 million. Many had invested heavily in banana farming as a commercial venture, employing daily laborers and expecting multi-year yields, only to see entire plantations destroyed. Repeated crop losses from natural disasters have left farmers disheartened, with some relying on loans for cultivation. The devastation underscores the vulnerability of commercial farming to extreme weather in the region.

Continuous Rainfall Threatens Paddy and Harvested Crops in Bajura and Humla:

Farmers in Bajura and Humla districts are struggling as continuous rainfall hampers paddy harvesting and damages stored crops. In Bajura, lowland paddy fields remain unharvested despite turning golden, raising fears of rotting. Similarly, in Humla, recently harvested crops—including millet, barley, maize, beans, and lentils—have been soaked due to untimely rain, with some grains already beginning to rot. The heavy rainfall has affected multiple municipalities, including Budhiganga, Adanchuli, Simkot, and Kharpunath, causing severe losses for farmers who invested months of labor. Officials warn that without immediate intervention, the extreme weather could devastate this year’s harvest and livelihoods.

Poultry Farming Booms in Salyan, Boosting Income and Local Employment:

Poultry farming is rapidly emerging as a key source of income in Salyan, with small farms expanding to house thousands of chickens. Tara Dev Wali of Bagchaur Municipality-7 started with just a few hundred broilers in 2020 and now manages 18,000 birds, using profits to invest in local land. Similarly, Rahim Das Miya of Triveni Rural Municipality earns around Rs. 2 million annually, producing over 1,700 eggs daily. High local demand for meat and eggs has encouraged many youth to enter the sector. District authorities support the industry through grants, low-interest loans, and market access programs, fostering self-reliance among young entrepreneurs.