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Wednesday, October 22, 2025

Nepal News Evening Economic Brief – October 21, 2025

October 21, 2025
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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:

Government Cuts Budget by Over Rs. 125 Billion After Gen Z Protest

Following the Gen Z protests, the new government has reduced about Rs. 125 billion from the total budget allocated for the current fiscal year. After assuming office, Finance Minister Rameshore Khanal made one of his first decisions to form a committee to study which projects’ budgets could be reduced within the ongoing fiscal plan. Similarly, the Cabinet meeting on September 22 decided to slash the budget of some projects. Based on that decision, the government has cut Rs. 114.10 billion across nearly a dozen development-related ministries.

Industrialists Reject NEA’s Controversial Charges, Cite Lack of Evidence

A coalition of Nepal’s leading industrialists has announced its refusal to pay the disputed dedicated/trunk line electricity charges demanded by the Nepal Electricity Authority (NEA). The group emphasized that the decision aims to protect legal governance and national economic stability, rather than avoid legitimate payments. According to the industrialists, the dispute is not limited to a few companies but affects over 30 major industries collectively. They argue that NEA’s seven-year billing record and lack of proof showing actual use of premium services highlights serious institutional weaknesses. They demanded that liability should only be determined based on transparent evidence, including TOD meter data and Lal Commission reports, and criticized NEA for arbitrary cancellation of administrative review procedures and requiring 5% bank guarantees for disputed amounts.

Over Rs 35 Billion in Foreign Investment Commitments in the First Three Months of Current Fiscal Year

In the first three months of the current fiscal year, Nepal has received foreign investment commitments worth over Rs 35 billion. According to the Department of Industry’s monthly report on foreign direct investment (FDI), from mid-July to mid-October, a total of 311 industries received investment commitments amounting to Rs 35.13 billion. The Department stated that during this fiscal year, seven large, four medium, and 300 small-scale industries received foreign investment commitments.

NEA Disconnects Power Lines of Industries with Outstanding Dues

The Nepal Electricity Authority (NEA) has started disconnecting the electricity lines of industries that consumed power through dedicated and trunk lines during past load-shedding periods without paying the required premium charges. On Tuesday morning, the authority cut electricity connections of Jagadamba Steel, Reliance Spinning Mills, Shivam Cement, Ghorahi Cement, Arghakhanchi Cement Industries, and Triveni Spinning Mills. The outstanding amounts for these industries are substantial, with Jagadamba Steel owing Rs 1.60 billion, Reliance Spinning Mills Rs 753.7 million, Shivam Cement Rs 778.8 million, Ghorahi Cement Rs 508.5 million, Arghakhanchi Cement Rs 448.4 million, and Triveni Spinning Mills Rs 321 million.

Farmers Unable to Sell Paddy at Government-Set Support Price

Although the Government of Nepal determined the support price for paddy as early as in mid-July, farmers have not been able to sell their produce at that price. Since traders have failed to implement the government-fixed support price, farmers have been unable to sell their produce at the declared rate. The Nepal government had set the price of coarse paddy at Rs. 3,463.81 per quintal and medium paddy at Rs. 3,628.33 per quintal.

Around 41,000 Silver Coins Sold During This Year’s Tihar

Around 41,000 pieces of silver coins were sold during this year’s Tihar festival. The Nepal Rastra Bank (NRB) had only distributed silver coins this year, as gold of standard quality (999.99 touch) was not available, and hence, Asarfi (gold coins) were not issued. According to the central bank, approximately 41,000 silver coins were sold during this period. This year, NRB had distributed coins weighing 10/10 grams only. The central bank determined the daily selling price of the coins based on the market rate of silver on that particular day.

Dry Fruits Account For Rs 2.50 Billion During Tihar

Every year, dry fruits alone account for trade worth around Rs 2.5 billion during Tihar. Known as Bhai Masala (sweets and dry fruits for brothers), dry fruits play a crucial role in energizing the economy. According to the Department of Customs, dry fruits worth Rs 2.45 billion were imported during the months from mid-July to mid-September alone this year. The most demanded dry fruits during Tihar include walnuts, almonds, cashews, pistachios, and raisins. Other items, like figs, areca nuts, and apricots, are also heavily consumed.

Consumers Complain About High Flower Prices This Tihar

Consumers have complained that flowers have become more expensive during this year’s Tihar festival. The rise in prices has been attributed to the restriction on flower imports from abroad. Consumers said the lack of sufficient flowers in the domestic market has also caused prices to soar. In previous years, flower garlands were available for around Rs 800 per bunch, but this year the price has risen to as high as Rs 1,200 for the same quantity, according to customers.

Road Expansion Work Still Incomplete Despite Five Years of Contracts

The project to expand two-lane roads into six lanes (including service lanes) in urban areas and four lanes in forested or low-traffic areas has been ongoing since 2018. Although the goal was to complete most sections within five years, not a single section has been fully completed so far. The work has been divided into five main segments: Kakarbhitta–Laukahi, Kanchanpur–Kamala, Kamala–Dhulikhel–Pathlaiya, Narayanghat–Butwal, and Butwal–Gorusinghe–Chanauta. These sections are being expanded with loan assistance from the World Bank and the Asian Development Bank (ADB).

Bhadrapur Inland Revenue Office Collects Rs 752 Million in Three Months

The Bhadrapur Inland Revenue Office in Jhapa district collected Rs 752.7 million in revenue in the first quarter of the current fiscal year 2025/26. The collection of the first quarter of the running fiscal is 16.9 per cent of the total annual target of Rs 4.45 billion, Chief Tax Officer Gopal Bahadur Thapa said. According to Thapa, the Office had set a target to collect Rs 871 million in revenue in the first three months of the current fiscal year.

Two Hydropower Projects Completed on Rahughat River in Myagdi

Tundi Power Company has completed two hydropower projects—Chimkhola–Rahughat–Mangale (35.5 MW) and Upper Rahughat (48.5 MW)—with a combined capacity of 84 MW on the Rahughat River in Myagdi district. The projects, built at an estimated cost of Rs 13 billion, are now connected to the national grid and have begun commercial power generation. According to company manager Pushpa Dangi, both run-of-the-river projects were completed within four years and can operate at full capacity based on water availability.

741,000 Tourists Visited Lumbini in Nine Months

A total of 741,000 tourists visited Lumbini, the birthplace of Buddha, in the nine-month period from January to September. According to the Lumbini Development Trust, the total number of visitors included domestic, Indian, and third-country nationals, reaching 741,578. 482,626 were Nepali tourists, 186,442 were Indian, and 72,510 were from other countries. This number is lower compared to previous years.

468 Kilograms of Marigold Sold in a Single Day in Tanahun

A total of 468 kilograms of marigold flowers were sold in a single day from Chimleshwar, Myagde Rural Municipality–4, in Tanahun district. The Chandeshwari Fruits and Vegetable Producers’ Group sold 468 kilograms of marigolds on Monday alone. The flowers were sold to Pokhara traders at Rs 300 per kilogram.

Siddhartha Bank Calls 24th Annual General Meeting on November 16

Siddhartha Bank has convened its 24th Annual General Meeting (AGM) for November 16 to endorse its dividend proposal. The AGM will approve the proposal to distribute a 5% bonus share and an additional 5.53% cash dividend (for tax purposes) on the bank’s current paid-up capital. The meeting agenda also includes amending the Memorandum and Articles of Association, granting authority to the Board of Directors for such tasks, and appointing new directors and auditors.

Export Halt at Aarti Strips Pvt. Ltd. in Morang Due to Lack of BIS Certification

The export operations of the multinational company Aarti Strips Pvt. Ltd., based in Budhiganga, Morang, have been suspended for the last two months after India’s Bureau of Indian Standards (BIS) refused to grant certification. With exports halted, the company has reduced its production by 90%. It is reported that the lack of BIS certification has also affected the exports of other iron and steel industries in the region.

Royal Rice Mill’s Trade Falls by 8.48%

The trade volume of Royal Rice Mill Pvt. Ltd., which sells rice under the brands Mustang, Kayara, and Nepal Gold, has declined by 8.48%. Compared to 2024, the company’s trade in 2025 dropped by 8.48%. The company’s total business in 2024 was Rs. 1.757 billion, which fell to Rs. 1.608 billion in 2025. In 2023, the company’s business volume had stood at Rs. 1.379 billion.

Golchha Family’s Hulas Steel Records Rs. 12.73 Billion in Trade

Hulas Steel Industries, owned by the Golchha family, recorded a business turnover of Rs. 12.734 billion in the last fiscal year. The company’s trade volume in 2024 was Rs. 12.712 billion, compared to Rs. 12.074 billion in 2023, Rs. 15.252 billion in 2022, Rs. 11.385 billion in 2021, and Rs. 6.087 billion in 2020.

Yeti Pharmachem Distributors Posts Nearly Rs. 4 Billion in Annual Trade

Yeti Pharmachem Distributors Pvt. Ltd. achieved an annual trade of nearly Rs. 4 billion last fiscal year, with a total of Rs. 3.835 billion in business. The company’s trade volume was Rs. 3.62 billion in 2024, Rs. 3.261 billion in 2023, Rs. 2.864 billion in 2022, and Rs. 2.617 billion in 2021. Statistics indicate that the company’s trade has been increasing steadily every year.