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:

NEPSE Ends Higher on Sunday, Gains 5.19 Points

The Nepal Stock Exchange (NEPSE) rose on Sunday, recovering momentum after 2:30 PM to close 5.19 points higher at 2,509. Earlier in the day, at 11:23 AM, NEPSE had dipped to 2,470 points, the day’s lowest. Trading volume remained low, with a total turnover of Rs 2.66 billion, slightly below the last trading day before Tihar, which saw Rs 2.79 billion in transactions. Among listed companies, 98 saw their share prices rise, 146 declined, and 4 remained unchanged.

NRB Withdraws RS 90 Billion from Banking System
Banks withdrew RS 90 billion from the banking system on Sunday, from the RS 125 billion they had deposited before Tihar. Nepal Rastra Bank withdrew this amount from the banking system for 42 days. Through various monetary instruments, the central bank recovers excess funds lent to banks and increases liquidity when capital is low.

Gold Imports Surge in First Quarter of FY 2025/26

Gold imports in Nepal have soared in the first quarter of the current fiscal year, totaling 601 kilograms of raw gold and nearly 5 kilograms of jewelry, according to the Customs Department. In comparison, during the same period last fiscal year, only 113.5 kilograms of gold were imported. The increase is attributed to rising gold prices, prompting investors to boost investments in gold, thereby driving higher demand.

Nepal Records Nearly Rs 400 Billion Trade Deficit in First Quarter of FY 2025/26

Nepal incurred a trade deficit of around Rs 395 billion in the first three months of the current fiscal year 2025/26, according to data released by the Customs Department. As of mid-October, the country’s imports totaled Rs 468 billion, while exports stood at R 72.82 billion. This resulted in a total foreign trade of R 540 billion, leaving Nepal with a substantial trade gap of Rs 395 billion during the period.

NEPSE Employees Stage Protest Over Bonus

Employees of the Nepal Stock Exchange (NEPSE) held a protest on Sunday within the exchange premises. Until just before Tihar, the staff had been demonstrating with black armbands. On Sunday, they marched with banners inside the premises to voice their demands. NEPSE employees have been on strike since September 23 regarding their bonus. The labor court had ordered the management to allocate 5% of NEPSE’s annual profit as employee bonuses, but the management reportedly resisted implementing the directive, prompting the staff to begin their protest.

Banks Under Pressure as Loan Principal and Interest Not Collected
Banks and financial institutions have largely failed to collect principal and interest due by mid-October. According to agreements, borrowers are supposed to pay installments and interest in the first quarter, but most have not, creating pressure on banks regarding their first-quarter financial statements. Uncollected principal and interest become non-performing loans over time, and the longer the delay, the higher the loss provisioning required by banks.

BP Highway Permanent Reconstruction to Begin After Chhath Festival
The long-operating BP Highway, which has relied on temporary tracks for a long time, is set for permanent reconstruction after the Chhath festival. The Department of Roads has stated that construction will proceed on sections where contracts have already been awarded. Preparations had been made to start reconstruction after Dashain, but continuous rainfall in the first week of October caused delays, and subsequent floods and landslides damaged the temporary tracks. The project aims to complete the highway by July 2027.

Land Revenue Collection Declines in First Quarter of Current FY
Compared to the same period last year, land revenue collection has decreased in the first three months of the current fiscal year. Land transactions fell by 6% and revenue by 8% compared to the same period last year. Revenue decreased by RS 830 million, from RS 10 billion last year to RS 9.17 billion this year. However, land transactions were 342,000 this year compared to 362,000 last year, according to the Department of Land Management and Records.

12 Stagnant Irrigation Contracts Terminated
Twelve stagnant irrigation contracts that were left incomplete for years after awarding have been terminated. These fall under the former People’s Embankment Program Field Office No. 2 in Jaleshwar, Mahottari. For six stagnant contracts under the Babai Irrigation Project, a 15-day public notice was issued on October 16. Energy, Water Resources, Irrigation, Physical Infrastructure, Transport, and Urban Development Minister Kulman Ghising had instructed subordinate bodies to terminate contracts where contractors took the project but did not work. Accordingly, the contract termination process has been initiated.

Thai AirAsia Resumes Regular Flights to Bhairahawa
A Thai AirAsia flight carrying 17 passengers landed at Gautam Buddha International Airport in Bhairahawa today, marking the resumption of international flights. The flight, originally scheduled to arrive at 12:15 PM, touched down at 12:48 PM. The Airbus A320 narrow-body aircraft marked the resumption of international flights, which had been suspended since April. The same aircraft is scheduled to depart for Thailand today with 162 passengers. According to officials at Gautam Buddha International Airport, flights this season will operate twice a week on Sundays and Wednesdays.

Nepali-Origin Entrepreneurs in Texas Ready to Invest in Nepal
Nepali-origin entrepreneurs living in Texas have expressed readiness to invest in Nepal if a conducive environment is created. They emphasized their willingness to invest in Nepalese industries to help transform the homeland’s economy and requested policy facilitation from the government. The statement was made during the “Business and Investment Conference 2025” in Dallas. They noted that they are eager to invest earnings from abroad for Nepal’s economic prosperity but require policy support.

Government Will Cover Losses from Gen Z Movement: Finance Minister
Finance Minister Rameshore Khanal stated that damages caused during the Gen Z Movement will be borne by the government if insurance and financial systems do not cover them. The statement was made while receiving a report from the Nepalese Association of Financial Journalists (NAFJ) titled “The Road Ahead for Economic Recovery.” Minister Khanal said that losses in the private sector during the protests would be covered by the government if no other mechanisms exist.

Employees Barred from Entering Hyatt Hotel
From today, employees are being denied entry to the Hyatt Hotel. The hotel administration has imposed the restriction on staff entry. Permanent, temporary, contractual, and daily wage workers were employed at the hotel. Permanent employees were allowed to reach the parking area after showing identification, but temporary, contractual, and daily wage staff were turned away at the gate. Currently, permanent employees are waiting for the management to call them for negotiations, but no updates have been received so far, according to one employee.

30,547 Foreign Tourists Visit Annapurna Region from mid-September to mid-October
From mid-September to mid-October, 30,547 foreign tourists visited the Annapurna region. Of these, 10,019 were from South Asian countries and 20,528 from other countries, according to the Annapurna Conservation Area Project. This is slightly lower than last year. Project officials noted a decrease of 185 tourists compared to the previous year, attributing the decline to the September Gen Z protests and adverse weather affecting Indian tourist arrivals.

Cardamom Exports Rise 33% in First Quarter
From Mechi Customs, cardamom exports in the first quarter of fiscal year 2025/26 increased by 33%. According to office data, exports totaled RS 1.679 billion during this period. In three months, 1,072 metric tons of cardamom were exported. In the same period last year (2024/25), exports were valued at RS 1.072 billion.

Tourist Rush Revives Pokhara’s Tourism Sector
Pokhara’s tourism sector, which had slowed in recent times, is now witnessing heavy influxes of domestic and foreign tourists. Long Dashain-Tihar holidays, clear mountain views, and favorable weather have created encouraging activity in hotels, restaurants, and tourist attractions. The city is a major tourist destination due to the Annapurna Himalayan range, serene Phewa Lake, paragliding, bungee jumping, and zip flyer adventure sports.

High Demand for Bananas in Janakpur Markets During Chhath
With the start of Chhath festival, the demand for bananas has surged in local markets of Janakpur and Dhanusha district. Banana sales have increased significantly due to their essential use as offerings during the festival. Vendors reported that whole banana bunches, used as primary offerings to Lord Sun during Chhath, are in high demand in Mahendranagar, Dhalkebar, Birendrabazar, Godar, Sabaila, Bateshwar, and Laxminiya markets.

Mustang Hotels Full Due to Domestic Tourists Post-Tihar
Following Tihar, domestic tourists have filled hotels in Mustang. Tourists opting for Mustang after Bhai Tika travel via Pokhara–Beni–Jomsom to Korala road, resulting in crowded small and large hotels. Hotels across all five rural municipalities in Mustang are fully booked due to simultaneous festival travel.

Narayanpur–Rajpur Road Section Remains Unfinished
The road linking Rapti Sonari Rural Municipality–3, Banke, to Rajpur Rural Municipality in Dang remains incomplete. Though the DPR was prepared years ago, construction has not started. According to the DPR, the road section requires an estimated budget of RS 6 billion. Lil Bahadur Bhandari, Chief of Postal Highway Directorate, Project Office Nepalgunj, stated that without construction, the Postal Highway will remain incomplete, prompting the continuation of the process.

Shangri-La Hospitality Group’s Star Hotel Construction Costs Increase
The Shangri-La Hospitality Group, building three star hotels aggressively, has seen rising construction costs. The group, operating five-star hotels in Kathmandu since 1979, has accelerated hotel construction across various locations. According to ratings for loans, the cost of two star hotels under construction has risen above initial estimates. The group plans to expand its Pokhara hotel into a five-star property while constructing resorts at two other sites.

Maulakali Cable Car Suffers RS 700 Million Loss During Gen Z Movement
The bottom station of Maulekali Cable Car in Gaindakot, Nawalpur, suffered nearly RS 700 million in damages due to vandalism and arson during the Gen Z Movement. On the evening of September 9, protesters damaged and set fire to the bottom station located in Gaindakot Municipality–1. Repair work is ongoing, including tiles, marble, and painting. Efforts are being made to reopen the cable car by mid-November.

Aarti Strips to Restart TMT Production in Morang
Aarti Strips, located in Budhiganga, Morang, plans to restart production of TMT steel rods, which had ceased three years ago. The Indian-invested company aims to bring TMT rods to market from the beginning of 2026. The industry also plans to operate its advanced melting unit within 18 months. Previously, three new steel units opened in the Sunsari–Morang Industrial Corridor, leading Arati Strips to close its TMT production unit three years ago.

Gold Price Drops by RS 11,600 in a Day
Today, the price of gold has decreased by RS 11,600. According to the Federation of Nepal Gold and Silver Dealers’ Association, this drop occurred in the market after Tihar. The price of hallmark gold today is RS 241,900 per tola. Before the Tihar holidays, gold was trading at RS 253,500 per tola. Silver prices also fell by RS 265 per tola, reaching RS 3,015, down from the previous RS 3,280 per tola.