KATHMANDU: Nepal News brings you a daily roundup of economic activities in Nepal. This summary provides concise updates across key sectors, keeping you informed on the latest market trends, policy changes, and financial developments. Here are today’s top economic highlights.

NEPSE Opens Week in Red; Down 31 Points

The Nepal stock market opened the week on a negative note on Sunday, with the NEPSE index falling 31.17 points (1.12%). Sensitive and float indices also declined, and total turnover dropped to NRs 6.6 billion from Thursday’s Rs 8.9 billion. Among listed companies, 21 gained, 228 fell, and one remained unchanged. Unnati Sahakarya Laghubitta led the gainers with a 6.77% rise, while Nepal Republic Media fell the most at 7.45%. Major sectors including development banks, finance, hydropower, and tourism recorded losses.

NRB Maintains Counter-Cyclical Buffer at Zero Percent for FY 2025/26

Nepal Rastra Bank has set the counter-cyclical buffer for banks and financial institutions at zero percent. The move under the Capital Adequacy Framework will help institutions maintain liquidity and encourage economic expansion.

Minister Assures Urea Fertilizer Will Be Available Within 10 Days

Agriculture and Livestock Development Minister Ramnath Adhikari assured that urea fertilizer imported from India will be readily available within 10 days. Speaking at an event in Chandrauta, he said the fertilizer from Kolkata will arrive in 7–10 days, ensuring farmers have easy access. He further stated that fertilizer distribution should be based on arable land and production requirements to avoid shortages and ensure fair allocation.

Govt Faces Challenge to Install 2.5 Million Embossed Number Plates by November 27

The government faces a challenge to print and install 2.5 million embossed number plates by November 27. So far, 1.2 million plates have been ordered, of which 800,000 have been printed. Completing the work on time seems difficult, and the government may face penalties. The latest contract states that if the work is not completed by November 27, 2025 the government will incur fines.

Clean Notes Exchange Starts from September 14

For Dashain, clean notes can be exchanged from September 14 to September 26. Nepal Rastra Bank announced that notes can be exchanged at its Thapathali office and provincial offices in Biratnagar, Janakpur, Birgunj, Pokhara, Siddharthanagar, Nepalgunj, and Dhangadhi. Authorized Class A, B, and C bank branches can also exchange notes for the general public and associations during working hours.

Finance Minister Paudel Says Government Working to Improve Investment Climate

Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel stated that the government is working to create an investment-friendly environment. Speaking at the 47th Annual General Meeting of the Trekking Agencies’ Association of Nepal (TAAN), he said the government aims to boost private sector confidence and create favorable conditions for investment. He reaffirmed government commitment to tourism promotion and national economic development.

NRB Withdraws Liquidity Through 21-Day Deposit Collection Instrument

To manage excess liquidity, Nepal Rastra Bank (NRB) withdrew liquidity using a 21-day deposit collection instrument. Banks and financial institutions were invited to participate via online bidding until 3 PM today. Bids were made in multiples of Rs 50 million for amounts exceeding Rs 100 million. Only Class A, B, and C banks and financial institutions may participate.

NRB Monitors CSR Spending of Banks and Financial Institutions

Nepal Rastra Bank has begun controlling how banks and financial institutions spend funds allocated for corporate social responsibility (CSR). The funds must be used for the welfare and upliftment of poor, disadvantaged, and targeted groups. Banks are instructed to spend at least 1% of net profit on CSR initiatives.

FDI Commitments Fall Short: Only Rs 12 Billion Invested Against Rs 65 Billion Commitment

In fiscal year 2024/25, Nepal received Rs 65 billion in foreign direct investment commitments but only Rs 12 billion was invested, according to NRB data. Out of 840 industries with commitments totaling Rs 64.96 billion, only Rs 12.01 billion has been realized. Despite high commitments, actual investment remains low, as only 18.5% of pledged funds were implemented.

Air India to Hand Over Ground Handling in Nepal to Nepal Airlines

Air India is set to transfer self-ground handling services in Nepal to Nepal Airlines. The airline will only provide technical support. Both organizations are finalizing bilateral cooperation and agreements. According to spokesperson Subash Dangi, Air India is now prepared to hand over ground handling responsibilities to Nepal Airlines.

NRB Directs Banks to Implement Interest Subsidy for Concessional Loans

Following government approval of guidelines for interest subsidies on concessional loans, NRB has instructed banks and financial institutions to implement the policy. The new unified procedure replaces the 2018 guideline, which involved Rs 10 billion in interest subsidy claims.

Industrial Rent Dispute: Federation Refuses to Pay Full Rent

Industrialists refuse to pay rent at Industrial Area Management Limited after bills were issued at old rates, despite the government’s announcement to cut rent by 50% in the FY 2025/26 budget. The Nepal Industrial Area Industry Federation stated that the 50% reduction promised in the budget was not implemented.

Cardamom Exports Rise Nearly 100% in First Month of FY 2025/26

In the first month of current fiscal year, cardamom exports reached Rs 32,17,61,000, a 99.54% increase over last year, according to the Department of Customs. All exports in the first month of current fiscal year went to India. Last year, exports were Rs 16,12,52,000. Quantity-wise, 87,900 kg were exported in the first month of last fiscal year, while 2,16,150 kg have been exported in the current fiscal year.

Final Design of Second Section of Ring Road to Arrive Within a Month

The final design of the second section of Kathmandu Ring Road is expected within a month. The Chinese team completed survey work in the second week of Asar. Once the design arrives, the Department of Roads will review it and proceed with tendering. The second section has been under discussion for more than 7 years, with China slated to handle the expansion.

Nepal Seeks Facilitation for Exports to China

Nepal requested customs facilitation and flexibility for exports of buffalo meat, dairy products, vegetables, fruits, and herbs to China. The meeting in Kathmandu involved Nepal’s Agriculture Minister Ramnath Adhikari and China’s Vice Minister of Customs Wang Lingjun. China responded positively. Nepal also emphasized exporting ghee, churned butter, and chhurpi along with processed buffalo meat and cartilage.

Nagdhunga Tunnel to Operate Commercially from January 1, 2026

The government plans to operate the Nagdhunga tunnel commercially from January 1, 2026. Secretary Keshav Sharma said preparations are underway, and a private-sector tender will soon be announced. Physical progress has reached 94.5%, and remaining work is expected to be completed by October.

Kohalpur–Surkhet 132 kV Transmission Line Must Be Completed by Tihar

The Kohalpur–Surkhet 132 kV transmission line in Karnali Province must be completed by Tihar. The project, costing Rs 700 million, was contracted to Indian company RS Infraprojects on July 7, 2019 but has yet to reach other districts, remaining incomplete in Surkhet.

Machhapuchchhre Bank Declares 8% Dividend for FY 2024/25

Machhapuchchhre Bank has become the first commercial bank to announce dividends for shareholders from the fiscal year 2024/25 profits. The bank’s board proposed an 8% dividend from distributable profits, consisting of 4% bonus shares and 4% cash dividend. The total proposed dividend is Rs 92,97,08,581.84, to be distributed from the bank’s paid-up capital.

Himalayan Life Insurance Opens Applications for Large Cap Mutual Fund

Himalayan Life Insurance has opened applications for its mutual fund, the HLI Large Cap Fund, operated under fund promotion. Out of 400 million units, 200 million units are issued for various associations and the public, according to Himalayan Investment Banker, the fund manager. The remaining 200 million units are allocated to Himalayan Life Insurance as the fund promoter. Investors can apply for a minimum of 100 units and a maximum of 40 million units.

Gold Price Surpasses Rs 200,000 Per Tola

Gold crossed Rs 200,000 per tola on Sunday, increasing by Rs 3,000 in a single day. The Federation of Nepal Gold and Silver Dealers Association set the price at Rs 203,600 per tola, the highest ever. Previously, the price was Rs 200,600 per tola. Silver prices also reached a record, increasing by Rs 65 per tola in one day.