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:

House Panel Reviews Bill to Modernize Nepal Rastra Bank Act

The House of Representatives’ Finance Committee has begun discussions on a bill to amend the Nepal Rastra Bank Act, aiming to strengthen Nepal’s monetary and financial system. The committee consulted representatives from the Nepal Bankers’ Association, the Confederation of Banks and Financial Institutions Nepal (CBFIN), Nepal Rastra Bank, and relevant ministries. Registered in Parliament in May, the proposed amendments seek to modernize the central bank’s legal framework, enhance financial sector credibility, and improve regulatory oversight in line with evolving economic and banking needs.

Development Spending Falls to Decade Low, Deepening Infrastructure and Jobs Crisis

Nepal’s capital expenditure fell to its lowest level in a decade in fiscal year 2025/26, excluding the COVID-19 lockdown year, raising concerns over delayed infrastructure projects and weaker job creation. The government spent only Rs 190.84 billion on development, just 46.79% of its original allocation of Rs 407.88 billion and Rs 31 billion less than the previous fiscal year. Development spending accounted for only 12% of total government expenditure of Rs 1,583.42 billion. Meanwhile, recurrent expenditure reached Rs 1,043.99 billion, while financial management spending, largely for debt servicing, totaled Rs 347.33 billion.

Foreign Employment Departures Fall 5.6% After Years of Growth

Nepal recorded its first decline in foreign employment departures in years, with the number of workers leaving abroad falling by 5.6% in fiscal year 2025/26. According to the Department of Foreign Employment, 792,187 Nepalis received labor permits, down by 47,079 from the previous fiscal year. Despite fewer departures, remittance inflows continued to rise as more migrant workers used formal banking channels. Skilled workers made up the largest share of those leaving for overseas jobs. The UAE remained the top destination, followed by Malaysia, Qatar, Saudi Arabia, and Kuwait, while European countries, including Romania and Cyprus, continued attracting increasing numbers of Nepali workers.

Aviation Reform Bill Seeks to Boost Safety, Unlock Growth

The government has unveiled draft legislation to split the Civil Aviation Authority of Nepal (CAAN) into separate regulatory and service entities, a reform aimed at strengthening aviation safety, attracting investment, and improving airport management. The move aligns with long-standing ICAO recommendations and could help Nepal work toward removal from the European Union’s air safety blacklist, expanding international market access for Nepali airlines. The proposed Nepal Air Services Authority (ASAN) would operate on self-generated revenue from airport and navigation services, while new safety measures seek to reduce operational risks and enhance aviation infrastructure.

RSP Lawmaker Warns Strict Rules Could Deter Bank Leaders

Rastriya Swatantra Party (RSP) lawmaker Bidushi Rana has urged lawmakers to soften proposed disqualification provisions in the Nepal Rastra Bank Act amendment, warning they could discourage qualified professionals from leading banks. Speaking at the House Finance Committee, Rana argued that minor disciplinary actions should not permanently bar CEOs or directors from future appointments. She also called for a two- to three-year cooling-off period, rather than a lifetime ban, for former commercial bank CEOs seeking appointment as Nepal Rastra Bank Governor.

UML Lawmaker Opposes More NRB Deputy Governors, Seeks Board Reform

CPN (UML) lawmaker Prof. Dr. Pushpa Raj Kandel has opposed proposals to increase the number of Nepal Rastra Bank deputy governors from two to three, arguing the existing structure is adequate. During deliberations on the central bank amendment bill, he also criticized the absence of female representation on the NRB board, saying the institution should meet the same governance standards it requires of commercial banks. Kandel further argued that co-operatives should remain under a separate regulator rather than being brought under the central bank’s oversight.

Nepal, Canada Explore Ways to Expand Bilateral Trade

The Embassy of Nepal, in collaboration with the Alberta-Nepal Chamber of Commerce, hosted a focus group workshop in Calgary to explore opportunities for expanding bilateral trade. The event brought together entrepreneurs involved in importing Nepali goods and services to discuss market potential, identify trade barriers, and strengthen commercial ties. Organizers said the workshop aimed to boost the presence of Nepali products in the Canadian market by fostering business partnerships and improving market access for Nepalese exporters.

Facebook Web Glitch Temporarily Disrupts Online Business Operations

A temporary outage on Facebook’s web platform disrupted desktop access for thousands of users on Sunday, affecting businesses that use the platform for digital marketing, customer engagement, and content management. The issue, which surfaced around 1:30 p.m., displayed an “Account Temporarily Unavailable” error to many users. Although the mobile app continued to function normally, the disruption highlighted the dependence of businesses on social media platforms for day-to-day operations.

Most Working Seniors Still Depend on Agriculture, Report Finds

Nearly three-quarters of Nepal’s economically active senior citizens continue to rely on agriculture for their livelihoods, underscoring the sector’s role as the country’s primary source of income in old age. According to the government’s Senior Citizens in Statistics 2083 (2026) report, 72.6% of working seniors are engaged in farming, while only 27.4% work in non-agricultural sectors. The report also shows that 68.8% are self-employed or laborers, highlighting limited retirement security and continued dependence on agriculture among Nepal’s 3.36 million elderly population.

Highway Blockade Disrupts Milk Supply, Hits Ilam Dairy Farmers

A 12-day road blockade on the Mechi Highway has disrupted milk sales in Ilam, leaving thousands of liters stranded and cutting off market access for dairy farmers. The Dairy Development Corporation’s chilling center has accumulated 3,600 liters of unsold milk after transport to Biratnagar was halted. Local business leaders are arranging alternative transportation using smaller vehicles to minimize losses. Officials say the disruption has severely affected farmers’ incomes and the dairy supply chain, with normal operations unlikely to resume until the highway reopens.

Most Sindhuli Local Units Now Operate From Own Offices

Most local governments in Sindhuli now operate from their own administrative buildings, reducing rental expenses and improving public service delivery. Golanjor Rural Municipality became the eighth of the district’s nine local units to shift to its own office after inaugurating a Rs 61.11 million administrative building. Officials say housing all departments under one roof cuts administrative costs, streamlines services, and saves citizens time. Only Ghyanglekh Rural Municipality is yet to complete its permanent office, with construction expected to finish by October.

Banana Waste Enterprise Turns Rural Innovation Into Income

A Makwanpur entrepreneur is transforming discarded banana stems into handmade Nepali paper, turning agricultural waste into a profitable rural business. After investing about Rs 800,000, Prem Prasad Timalsina now earns around Rs 500,000 annually by supplying eco-friendly paper to local governments and the incense industry. His enterprise, launched after returning from foreign employment, also aims to create local jobs and reduce waste. Despite challenges including poor roads and unreliable electricity, Timalsina plans to expand production, supply government offices, and demonstrate how value-added processing can boost rural incomes and sustainable enterprise.

Tour de Lamjung Aims to Boost Tourism, Local Economy

Lamjung will host the inaugural Tour de Lamjung 2026 from September 4–6, with around 400 cyclists expected to participate in a three-day event designed to promote tourism and stimulate the local economy. Organized by the Lamjung Cycling Association, the event will showcase the district’s natural and cultural attractions while benefiting homestays, hotels, restaurants, and small businesses along the route. With an estimated budget of Rs 2.8 million, organizers hope the cycling festival will strengthen adventure tourism, generate local income, and evolve into a national and international sporting event in the years ahead.

China Trade Route Upgrade Hampered by Monsoon, Slowing Cross-Border Cargo

Monsoon rains and ongoing road expansion have disrupted freight movement along the Syabrubesi–Rasuwagadhi highway, Nepal’s busiest overland trade corridor with China. Muddy stretches and construction work have made it difficult for cargo trucks carrying imports and exports to pass, slowing cross-border trade. The Chinese-funded upgrade, launched after last year’s flood damaged the highway, aims to expand the road into a safer two-lane route with improved retaining walls and landslide protection. Once completed, the project is expected to reduce transport costs, improve supply chains, and boost trade and tourism, though authorities have urged caution until construction is finished.

Shivapuri-Nagarjun National Park to Launch E-Ticketing System

Shivapuri-Nagarjun National Park will launch an e-ticketing system next week at its Panimuhan and Nagarjun entry gates after a successful trial, marking a step toward digitizing public services. The system is designed to streamline visitor entry, improve transparency, and speed up ticketing through QR scanners, thermal printers, and computerized processing. Park officials plan to expand the service to other entry points with internet and electricity access. The government also aims to roll out e-ticketing across all national parks and wildlife reserves within six months to improve visitor management and ensure transparent revenue collection.

Madhesh Targets Higher GDP Share Through Investment, Industrial Growth

The Madhesh Province government has unveiled plans to raise its 13 percent contribution to Nepal’s GDP by accelerating investment, industrialization, and private sector-led economic growth. Priorities include organizing an investment summit, promoting agro-based industries, expanding irrigation, developing industrial villages, improving cross-border trade, and boosting tourism. Officials say unlocking the province’s economic potential requires greater investment and business-friendly reforms. With fertile farmland, a large workforce, and a strategic border location, Madhesh aims to increase production, attract investors, and strengthen its role as one of Nepal’s key economic engines.

Adequate Fertilizer Stock Expected to Boost Farm Output

The Lahan office of Krishi Samagari Company Limited has assured farmers of an adequate supply of chemical fertilizers, easing concerns ahead of the planting season. The office supplied 16,840.37 metric tons of fertilizers in the last fiscal year and currently holds stocks of urea, DAP, potash, and agricultural lime. Officials said uninterrupted fertilizer availability will help farmers avoid shortages, improve crop productivity, and support higher agricultural output, strengthening food production and the rural economy during the current farming season.

NMB Bank Integrates Nagarik App to Simplify Digital Banking

NMB Bank has partnered with the Department of Information Technology to integrate the Nagarik App into its digital banking services, allowing customers to complete online banking forms more quickly and securely. The system automatically populates customer information with user consent, reducing paperwork and eliminating the need for repeated manual data entry. The bank said it cannot access personal information without explicit approval through the Nagarik App and will use the data only for its intended purpose. The move is expected to enhance convenience, strengthen data privacy, and accelerate Nepal’s digital banking transformation.

Gold Rises by Rs 1,900 per Tola, Silver Also Gains

Gold and silver prices increased in the domestic market on Saturday, according to the Federation of Nepal Gold and Silver Dealers’ Association. The price of fine gold rose by Rs. 1,900 per tola to reach Rs. 284,000, up from Rs. 282,100 on Friday. Silver also became costlier, with its price increasing by Rs. 40 per tola to Rs. 4,240. The rise continues recent fluctuations in precious metal prices, reflecting movements in the international market and domestic demand.