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:

Commercial Bank Deposit Rates Decline in Mid-October to Mid-November

Interest rates of commercial banks have fallen further for the period from mid-October to mid-November. The average maximum interest on individual fixed deposits dropped by 0.263 percentage points, falling from 5.4635% in mid-September to mid-October to 5.2005% in the current period. The highest rate continues to be 6%, offered by Global IME Bank and Himalayan Bank. Among 20 banks, 14 reduced their rates while six kept them unchanged.

Finance Minister Suggests Simplifying ADB Project Guidelines

Finance Minister Rameshore Khanal suggested simplifying the implementation standards and guidelines of projects to Masato Kanda, President of the Asian Development Bank. The suggestion came during a meeting in Washington, D.C., while attending the annual meetings of the World Bank and IMF. Minister Khanal highlighted ADB’s long-standing contribution to infrastructure development in Nepal.

Gen Z Movement Insurance Payments Delayed by Nepal Reinsurance

Insurance claim payments for property damage caused by fire and vandalism during the Gen Z movement have been delayed due to Nepal Reinsurance Company. Delays in advance claim payments by Nepal Reinsurance affected insured parties. The interim government had decided to provide up to 50% advance payments on insurance claims for properties damaged during the movement, and insured parties expected timely payments accordingly.

Industries Begin Paying Arrears on Premium Electricity Charges

Industries consuming electricity through dedicated and trunk lines have started paying arrears of premium charges to Nepal Electricity Authority. Currently, Samrat Cement, Rolpa Cement, and New Nepal Plastic Industries have made payments. These industries had previously used installment facilities to clear arrears but had stopped since May after partially paying.

Hydropower Projects Halted Due to Government Delay

Construction of two domestically funded hydropower projects has been halted for three months due to government delays. The Supreme Court had ordered the Ministry of Forests and Environment to create procedures for constructing hydropower projects in national parks and conservation areas. The ministry instructed the National Parks Department, but procedures remain incomplete. Consequently, construction of the Tamakoshi-5 project and the 20 MW Rolwaling Diversion under Upper Tamakoshi Hydropower has been blocked by conservation areas.

Industry Ministry Releases Five-Month Work Plan

Minister for Industry, Commerce and Supplies Anil Kumar Sinha has unveiled his work plan for the next five months. Leading three ministries in the current interim government, he has, for the first time, disclosed a 39-point action plan under this ministry. The plan separates the ministry’s three different operational areas.

Only Rs 60 Million Collected for Infrastructure Reconstruction Fund

Only Rs 60.07 million has been collected in the Physical Infrastructure Reconstruction Fund, established to rebuild government structures damaged during the Gen Z movement. The Ministry of Finance stated that the fund, set up on September 24 by the government, has so far received just Rs 60.07 million. The fund, created to manage resources for reconstruction of government properties, has not yet collected the expected amount.

Government Restricts Real Estate Transactions Over Rs 30 Million Through Licensed Brokers

From now on, real estate transactions over Rs 30 million must be conducted only through government-licensed brokers. The government issued a gazette notice preventing direct purchases or sales of high-value property. Companies must also obtain government permission (license) to carry out real estate transactions.

Government Moves to Cancel 17 Dormant Road and Bridge Contracts

The government has initiated the process to cancel 17 dormant contracts related to roads and bridges. These contracts were awarded but left incomplete for years. The process is being carried out by the Postal Road Directorate, Federal Road Supervision and Monitoring Office (Kathmandu), and various road division offices under Itahari. A public notice on Friday questioned why 17 dormant contracts—five each in Biratnagar, Chandranigahpur, and Directorate, and two in Nuwakot—had not been canceled.

Over Rs 3.26 Billion in Flood and Landslide Claims Reported

Following heavy rains and floods on October 4, insurance claims worth over Rs 326.76 million have been filed. According to the Insurance Authority, as of October 16, 364 property insurance claims were reported due to damage from floods and landslides.

Trade Through Korala Slowly Picking Up

In the month following 30 Bhadra, trade through the Korala border with China has slowly resumed. During this period, 1,273 electric jeeps, cars, and vans were imported into Nepal, along with some vehicle parts, machinery, and other items. Revenue of Rs 2.39 billion was collected from other imported goods. The large number of vehicle imports at the early stage has shown potential for Korala as a trade point for both traders and customs authorities.

Flower Exports Double in Fiscal Year 2024/25

According to the Customs Department, annual exports of flowers and flower-based products rose from Rs 10.02 million in fiscal year 2023–24 to Rs 21.36 million in fiscal year 2024-25. Flowers produced in Nepal are exported to countries including Japan, Hong Kong, the USA, Australia, Qatar, Canada, and the UAE. Kathmandu Metropolitan City has decided to ban imported flowers to promote domestically produced flowers this year.

Floods Cause Over Rs 1 Billion Damage to Agriculture in Mahottari

Recent continuous rains and floods caused over Rs 1 billion damage to agriculture in Mahottari. According to the Agriculture Knowledge Center, crops like rice, sugarcane, vegetables, fruits, legumes, and nursery plants were severely affected. Over 1,225 hectares of agricultural land across 14 local levels were completely destroyed, equaling 57,527 metric tons of crops with a market value of approximately Rs 96.58 million.

43 Local Levels Yet to Submit Budgets

Even after three months of the current fiscal year, 43 local levels have not submitted their budgets. Local bodies are required to present annual budgets by June 24. The Constitution mandates the federal government to present the budget on Republic Day, and provincial governments submit budgets on June 15.

Over Rs 268 Million Worth of Decorative Lights Imported in Two Months
In the first two months of the current fiscal year, decorative lights worth Rs 268.79 million in 26,879 different designs and colors have been imported into Nepal. Due to the closure of the Rasuwa and Tatopani border points with China since the beginning of June, large quantities of lights remain stuck in China. At least Rs 400 million worth of lights would have arrived if the border was open.

Himalayan Bank Services Unavailable from October 20-27

Himalayan Bank’s banking services will be unavailable from October 20-27 due to the upgrade of its core banking software to T-24 Release R-23. During this software upgrade, all banking services provided by the bank will be temporarily suspended.

Arambha Chautari Microfinance Signs Discount Agreement with Prabhu Bank

Arambha Chautari Microfinance Financial Institution Limited and Prabhu Bank Limited have signed an agreement for employee discount benefits. The agreement ensures banking services for Arambha Chautari staff. CEO Shiva Prasad Gyawali and Prabhu Bank Central Business Center Head Lekh Bahadur Pun signed the agreement.

Sanima Bank Offers Cashback and Discounts for Tihar and Chhath

Sanima Bank has announced cashback and discount offers for its customers at various merchants during Tihar and Chhath festivals. During the scheme, customers purchasing sweets from partner merchants using Sanima Bank debit and credit cards will receive 10% cashback (up to Rs 200) and an additional 10% discount.

Standard Chartered Bank Declares Cash Dividend

Standard Chartered Bank has announced a cash dividend for shareholders from last fiscal year’s profits. The bank will distribute a cash dividend at 19% of its paid-up capital (including tax purposes). The board of directors decided on this rate at its meeting on October 17.

Himalayan Distillery Declares 25% Dividend

Himalayan Distillery has announced a 25% dividend for its shareholders. Of this, 5% will be paid as cash (including tax) and 20% as bonus shares. The company has also scheduled a general assembly at its registered office in Parsa on November 16. The book closure date for the assembly is set for November 6.

Gold Price Surges by Rs 7,100, Reaches Record Rs 258,000 Per Tola

Gold prices in Nepal soared by Rs 7,100 per tola on Friday, reaching Rs 258,000, according to the Federation of Nepal Gold and Silver Dealers’ Associations. On Thursday, the price of hallmark gold was Rs 250,900 per tola, meaning Friday saw one of the sharpest single-day increases in recent weeks. Silver prices also climbed, rising by Rs 75 per tola to Rs 3,350 from Rs 3,275 the previous day.