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 Index Continues to Decline for Second Consecutive Day

The Nepal Stock Exchange (NEPSE) index experienced a continuous decline in the first two trading days of the week. After falling by 30.02 points on Sunday, the index dropped another 5.80 points on Monday, settling at 2560.29. Total share transactions reached Rs 4.51 billion. While 151 companies saw their share prices decrease, 90 gained, and 11 remained stable. Only the Hotel and Tourism, Investment, and Trading sub-indices managed to register positive growth for the day.

Gen Z Protests Hit Business Confidence, Nepal’s Economic Growth Slashed to 3.1%

Nepal’s economy faces mounting pressure as business confidence sharply declines following the Gen Z protests, resulting in sluggish lending and weakened private sector morale. Approximately Rs 1.1 trillion remains idle in banks due to limited credit demand, leaving excess funds unutilized amid low investment confidence. Investor fears triggered by the demonstrations have dampened business sentiment and raised concerns over potential capital flight. Reflecting these challenges, the World Bank has revised Nepal’s economic growth projection for FY 2025/26 to 3.1%, down from an earlier 5.2%, highlighting the adverse impact of political unrest and social instability on economic performance.

Nepal Sees Sharp Rise in Smartphone Imports, China Dominates Supply

Nepal imported 804,860 smartphones worth over Rs. 13.62 billion during the first three months of FY 2025/26, marking a 23% increase in quantity and 38.55% increase in value compared to the same period last year, according to the Department of Customs. Revenue from mobile imports reached Rs. 2.5 billion, up from Rs. 1.83 billion last year. China remains the largest supplier, accounting for 87% of imported units and 79% of value, followed by India. Smartphones were imported from 38 countries, including the UAE, Japan, and the US. Over recent years, Nepal’s smartphone imports have shown steady growth, reflecting rising domestic demand.

Commercial Banks Face Rising NPLs, Net Profits Decline by 18.7%

Non-performing loans (NPLs) of Nepalese commercial banks have risen sharply, with Himalayan Bank’s NPL at 7.39% and nine banks exceeding 5%, according to unaudited reports from 20 banks. Average NPL reached 4.86%, up from 4.04% last year, forcing banks to allocate Rs 11 billion for provisioning in the first quarter of FY 2025/26. Economic slowdown in sectors like real estate, SMEs, and construction, coupled with political volatility, hindered debt recovery. Net profits of 20 banks fell 18.67% to Rs 13.14 billion, with only five banks reporting growth. Weak financial health may limit dividend distribution in coming quarters.

Private Sector Urges Nepal to Reconsider 2026 Graduation from LDC Status Amid Economic Risks

Nepal is scheduled to graduate from Least Developed Country (LDC) to developing country status in November 2026, according to the UN General Assembly’s earlier decision. However, recent political unrest and economic instability have raised concerns among the private sector, which is urging the government to consider extending the timeline. Nepal Industrial and Commerce Federation highlighted risks of losing trade privileges and reduced market access, especially in non-India markets, following graduation. While government officials argue the economy remains stable and the three-year grace period mitigates harm, private stakeholders stress the need for policy and diplomatic measures to safeguard exports, domestic production, and investor confidence.

Nepal Securities Board Resolves Staff Dispute, Employees to Resume Work

The Nepal Securities Board (SEBON) held a full board meeting at the Ministry of Finance, successfully resolving ongoing staff disputes that had disrupted operations for 47 days. The board formed a study committee to review the Ministry of Finance’s decision on employee service and benefits cancellations and assess its impacts. The committee, chaired by Vinod Kumar Bhattarai, Joint Secretary at the Ministry of Law, includes SEBON Board Director Anand Wagle and Executive Director Vinaydev Adhikari. Tasked with submitting a report within three days, the committee’s recommendations will guide SEBON in finalizing resolutions and forwarding decisions to the Finance Ministry. Following the meeting, striking employees have agreed to return to work.

Tourist Sites in Jajarkot Fall into Neglect Amid Lack of Preservation Efforts

A dozen religious and cultural tourist sites in Jajarkot are deteriorating due to insufficient funding and poor planning by local governments. Historical landmarks, including the 250-year-old Rato Seto Durbar, Shiva Temple, Sangta Cave, and Machhaina Malika Temple, suffered further damage from the 2015 earthquake and remain in disrepair. Despite allocations for agriculture, health, and infrastructure, tourism projects have been neglected, reducing domestic and international visitor interest. District officials urge listing and preservation of these sites to boost tourism and local income. While some municipalities have allocated funds, broader coordination with provincial authorities is needed for effective restoration and sustainable tourism development.

Over 600 Containers Stranded at Nyalam as Delays Hit Tatopani Trade Route

More than 600 containers bound for Nepal remain stuck around Nyalam due to slow inspections at the Nyalam Customs Office in Tibet, affecting goods entering through the Tatopani border. Sindhupalchok Chamber of Commerce and Industry President Buddharaj Basnet said containers have piled up in Nyalam, Khasa and Ramite, stranding goods worth billions of rupees. Nyalam Customs has prioritized checking electric vehicles, delaying essential and perishable goods. After floods damaged the Kerung route in July, all trade shifted to Tatopani, worsening congestion. Despite road clearance on the Nepali side, Nyalam is releasing only 15 containers daily, far below the earlier 50–60, causing severe disruption for traders.

2% of Health Insurance Claim Payments to Be Deposited into Health Insurance Fund

The Health Insurance Board of Nepal has announced that 2% of approved claim payments received by service provider health institutions will now be deducted and deposited into the Health Insurance Fund. The board issued the notice to inform all participating health institutions about the implementation of this decision, which was approved during a board meeting on Chaitra 19, 2081. The move aims to strengthen the health insurance fund, which has historically remained inactive despite provisions in the Health Insurance Act, with the board previously relying on funding from the Ministry of Health. Officials believe the strengthened fund will enhance overall health insurance services and sustainability.

Rs 75.2 Million Collected for Reconstruction Fund After Gen Z Protests; Expenditure Plan Approved

A total of Rs 75.2 million has been deposited into the fund established for the reconstruction, economic revival, relief, and rehabilitation following damage caused by the Gen Z protests. The Physical Reconstruction Committee, chaired by Finance Minister Rameshwar Khanal, met on Monday to approve the fund’s utilization. Rs 35 million has been allocated to prepare detailed engineering designs and reconstruction reports of damaged public and government structures. Rs 30 million is earmarked for immediate repair and restoration of public infrastructure, while Rs 5 million will support economic revival and relief programs. A dedicated website will be launched to ensure transparency and public accountability.

Nepal Opens Doors to Thousands of Old, Polluting Vehicles

Despite introducing the strict Nepal Vehicle Emission Standards, 2082 equivalent to Euro-6, the government has temporarily allowed the import of thousands of old, polluting vehicles from India, previously banned there. This decision will add around 9,000 old motorcycles, 3,000 cars, and thousands of commercial vehicles to Nepali roads, increasing emissions of nitrogen oxides and particulate matter. Environmental experts warn this move undermines public health, contradicts the government’s clean vehicle policies, and turns Nepal into a dumping ground for outdated vehicles. Critics highlight the policy inconsistency, especially as electric vehicle adoption rises, questioning the government’s commitment to environmental protection.

Third Amendment to Land Use Regulation Reopens Land Registration Nationwide

The government’s third amendment to the Land Use Regulation, 2082 has reopened land registration (kittakāt) across Nepal, which had been blocked in 500 municipalities since last Shrawan due to incomplete land classification. Out of 753 municipalities, only 253 had fully classified land, delaying registration and related administrative work. The Ministry of Land Management had previously amended the regulation twice—first in Jestha 2079 and again in Bhadra 2081—to give municipalities time to classify land into agricultural and other categories. With the latest amendment approved by the Cabinet on Monday, municipalities can now proceed with land registration and complete pending classifications.

Bajura’s Bahuni Farmers Rush Sprouting Onions to Market After Months of Storage

Farmers in Swamikartik Bahuni, Bajura, have begun transporting their onions to towns after nearly six months of unsuccessful attempts to sell them. Around 35 Dalit households produced 110 quintals of organic onions this year, but lack of market access left the harvest stored in Peelichaur, where much of it has begun drying and sprouting—leaving only 80 quintals usable. Farmers say the delays have caused serious financial hardship, despite investing heavily in production and transport. Although Bahuni has an onion collection centre, the absence of cold storage has worsened losses. Local authorities and the Agriculture Knowledge Centre are now offering transport subsidies to help farmers sell their produce in towns like Surkhet and Nepalgunj.

Bagmati Government Allocates Rs 67.47 Billion for Chitwan Roads, but Projects Missing from Official Project Bank

The Bagmati Province government has allocated Rs 67.47 billion for road and infrastructure upgrades in Chitwan for FY 2025/26, but many listed projects are not registered in the official Project Bank, raising concerns over transparency and compliance. Despite guidelines requiring all large projects to be included in the Provincial Project Bank Management Information System (PPBMIS), ministries continue bypassing it and entering plans only through PLMBIS. Officials admit poor coordination, political interference, and widespread allocation of small, fragmented projects—many worth just Rs 1 million—contradict policy goals. With over 13,981 small projects and weak implementation of project bank reforms, experts warn the budgeting process remains ad-hoc and politically driven.

Helambu Revives Its Legacy as Apple Hub After 40 Years, Farmers See Rising Income

Helambu in Sindhupalchowk is regaining its historic identity as the “town of apples,” with around 60 households returning to commercial apple farming after nearly four decades of decline. Improved varieties such as Fuji and Gala, imported from Himachal Pradesh, have begun yielding high-quality fruit, encouraging local farmers and attracting tourists. Apple farming had collapsed after a devastating disease outbreak in 1985, but renewed efforts and modern techniques have restored production. Farmers are now earning significant income, with some selling thousands of kilos of apples. Helambu Rural Municipality plans to develop the region as a commercial apple hub, offering insurance and technical support to boost productivity and make residents more self-reliant.

Home Secretary Inspects Korala Border Point, Pledges Upgrade to International Checkpoint

Home Secretary Rameshwor Dangal and Immigration Department Director General Ramchandra Tiwari inspected the Korala Check Point on the Nepal-China border in Mustang, reviewing immigration, customs and APF border outpost operations. Local officials briefed the team about existing challenges, including inadequate infrastructure and visa-related hurdles. Chair Lopsang Chhompel Bista urged the government to enable Chinese visa processing from Mustang and scrap the entry fee for foreigners to boost tourism. Dangal committed to developing Korala as an international border point, noting that over Rs 30 million has been allocated for a permanent immigration building. He also pledged to strengthen infrastructure and improve access to Kailash Mansarovar, Shigatse and Lhasa.

Frequent Flight Diversions Raise Concerns Over Nepal’s Underused International Airports

Tribhuvan International Airport (TIA) faced nearly five hours of disruption on Saturday due to airfield lighting problems, forcing Korean Air and Fly Dubai flights to divert to Delhi and Lucknow. Despite Nepal having two additional international airports—Gautam Buddha in Bhairahawa and Pokhara—foreign airlines continue to bypass them during diversions, frustrating locals and business groups. Experts cite inadequate technical manpower, lack of nighttime passenger facilities, inconsistent fuel pricing, and weak diplomatic efforts as key reasons. Gautam Buddha International Airport, operational since 2022 but severely underutilized, has seen minimal diverted landings and limited international flights, raising questions about the viability of Nepal’s costly airport projects.

Subsidy for Buffalo Rearing to Boost Meat Exports

The Ministry of Agriculture and Livestock Development has introduced a scheme to offer up to a 50 percent subsidy to farmers for buffalo and heifer purchase, shed construction, and fodder cultivation. This initiative, launched under the Buffalo Promotion Program, aims to commercially boost meat exports from Nepal. The program, managed through District Livestock Service Offices, mandates compulsory animal insurance and the purchase of livestock from approved centers. This supports various activities, including disease control and equipment aid, to enhance the meat industry.

Nepal Telecom Launches Affordable Student Fiber Offer

Nepal Telecom has unveiled the ‘NT Fiber Student Offer’ targeting students born in 1997 or later. The offer, inaugurated by Minister of Communication and Information Technology, Jagadish Kharel, aims to promote digital education with affordable high-quality internet. For Rs 4,999 (including tax), eligible students receive 30 Mbps internet service for one year, along with a free dual-band CPE and 100 meters of fiber. The scheme will be effective until February 5, 2026.

Revenue Office Tightens Scrutiny on Rupandehi Casinos

The Revenue Investigation Office (RIO), Butwal, has intensified surveillance on casinos operating in Rupandehi district over concerns regarding tax evasion and capital gains tax payment. The RIO issued a nine-point directive to all casinos, instructing them to submit comprehensive financial transaction details from the fiscal year 2024/25 to the current year within three days. The investigation specifically targets the use of restricted Indian currency notes and the potential unauthorized entry of Nepali citizens onto casino premises.

India Eases Restrictions on Nepali Plywood Exports

India has started facilitating the export of Nepali plywood after resolving initial concerns about the products. The Bureau of Indian Standards (BIS) has now approved the ISI certification for seven additional Nepali plywood companies, clearing the path for others to follow. Indian authorities had previously created hurdles, citing various doubts, reportedly over the possible entry of Chinese raw or finished goods. This positive development follows recent diplomatic efforts involving the finance minister and the Nepali Ambassador to India.

Flooding Causes Rs 130 million Damage to Madhesh Fish Farms

The Madhesh Province suffered approximately Rs 129.48 million in damages to fish stocks due to the severe flooding and cyclonic weather event in last week of September. The Ministry of Agriculture and Livestock Development reported that all eight districts in the province were affected. The high water levels caused fish to escape from ponds, resulting in significant losses. Madhesh Province is a crucial fish production area, contributing about 60 percent of Nepal’s total fish output.

Lumibini Province Rice Crop Suffers Rs 134 Million Loss

Unseasonal rain recently caused an estimated loss of Rs 134.3 million to the rice crop across seven districts in Lumbini Province. According to the Directorate of Agriculture Development, an average of 3,800 tons of rice was damaged across 896 hectares. Although this represents only 0.30 percent of the total cultivated area, the loss is substantial for individual farmers. Preliminary data indicates the highest total loss occurred in Rupandehi district, where 240 hectares of paddy were completely destroyed.

NRB Cautions Prime Commercial and Kumari Bank

The Nepal Rastra Bank (NRB) has taken action against Prime Commercial Bank and Kumari Bank for non-compliance with regulatory directives during the first quarter of the current fiscal year. Prime Commercial Bank’s CEO received a warning for failing to correctly classify loans based on overdue periods and for inadequate calculation of loan loss provisions and risk weightage on certain loans. Kumari Bank was also cautioned for allowing banking transactions, other than deposits, to individuals and entities on the blacklisting system.

Dolpa Apple Production and Revenue Surges

Dolpa’s apple production is rapidly increasing, with the district exporting 400 metric tons and earning approximately Rs 22 million through the National Agriculture Modernization Program. This marks a significant jump from 100 tons sold last year. To support sales in cities like Surkhet and Kathmandu, a transport subsidy of Rs 6 per kg was provided for 6.5 tons of apples. The current annual budget of Rs 36.05 million is allocated to expand apple zones, improve traditional orchards, and promote production of other key crops.

Export Falls, Import Rises at Mechi Customs Point

Trade imbalance has worsened at the Kakarbhitta eastern border, the Customs Office, Mechi reports. In the first quarter of the current fiscal year, exports declined by 21.08 percent, while imports increased by 13.31 percent. Total imports reached Rs 12.28 billion, a rise of Rs 1.44 billion compared to the previous year. Exports totaled Rs 4.80 billion, down from Rs 6.08 billion. Non-tariff barriers from India continue to challenge exports of items like cardamom, tea, and plywood.

Major Foreign Investment in Buffalo Meat Processing Plant

A Rs 20 billion Foreign Direct Investment (FDI) from China’s Chengdu Jian Food Company has been approved for a processed cooked buffalo meat factory in Sindhuli. This massive project, a partnership with Himalaya International, is currently underway with infrastructure development. Factory construction is slated to begin in around December. The goal is to export 500 tons of meat daily within a year, connecting farmers across several districts for buffalo rearing starting mid-December.

Minister Ghising Asks Helambu to Lift Melamchi Water Blockade

Minister of Energy, Water Resources, and Irrigation, Kulman Ghising, has urged Helambu Rural Municipality to help remove the blockade at the Melamchi Drinking Water Project source. The obstruction, raised by project-affected locals demanding implementation of past agreements, has halted water supply to Kathmandu Valley. Government is ready for dialogue, but Minister Ghising emphasized the urgency of resolving the issue as the capital faces a water crisis. Locals demand payment for land acquisition and 25 percent of water sales revenue for development.

Nepal-Malaysia Labour MoU Stalled Amid Renewal Deadline

The 2018 Memorandum of Understanding (MoU), which established a framework for Nepali workers’ recruitment and protection, is two years overdue for renewal. The original agreement, signed on October 29, 2018, protects the rights of over 358,000 workers in sectors like Manufacturing and Services. Despite Nepal’s repeated diplomatic efforts, Malaysia has not responded to renewal requests. Nepali officials attribute the delay to shrinking job demand and syndicate pressure to adopt restrictive recruitment models. Nepal has formally rejected Malaysia’s proposed 10-point manpower criteria.

Corruption Case Filed Over Rs 5.58 Million Dolpa Road Project Irregularities

The Commission for Investigation of Abuse of Authority (CIAA) has filed a charge sheet at the Special Court against eight individuals, including government officials and a contractor, for financial irregularities in the upgrade of the Khadang-Lham road in Tripurasundari Municipality, Dolpa. The investigation found evidence of collusion during the tender process. The evaluation committee was found to have wrongfully disqualified competitors to award the contract to the highest bidder, Divya Construction Service, resulting in a government loss of Rs 5.58 million.

Korala Pass to Close Despite Generating Rs 3 Billion in Revenue

The alternative Korala trade route, opened temporarily on September 16 following the closure of Rasuwagadhi and Tatopani, will close in December due to extreme cold. Despite its temporary status, the pass proved vital, generating Rs 3.02 billion in revenue in just over one month. Imports through this Mustang-based route soared to Rs 5.27 billion by mid-September to mid-October, including 1,498 electric vehicles. Chinese authorities cited sub-zero temperatures and freezing diesel at the 4,000-meter altitude for the four-month winter closure, stressing traders reliant on stable import channels.

Singapore Airlines Permanently Upgrades Kathmandu Route Fleet

Singapore Airlines has permanently upgraded its Kathmandu-Singapore route to the Boeing 737-8 MAX aircraft, replacing the older 737-800 NG. This significant upgrade offers enhanced comfort and efficiency for passengers. Key features include full lie-flat Business Class seats and complimentary Wi-Fi for all passengers throughout the flight. The new generation aircraft is part of the airline’s commitment to providing a superior and environmentally friendly travel experience, linking Nepal to global destinations.

Gold Price Jumps by Rs 2,900 per Tola

The price of gold surged on Monday, increasing by Rs 2,900 per tola. According to the Federation of Nepal Gold and Silver Dealers’ Associations, gold is now trading at Rs 241,500 per tola, up from Rs 238,600 on Sunday. Similarly, the price of silver also saw an increase, climbing by Rs 50 per tola to reach Rs 3,065 today. This marks a notable jump in the value of precious metals in the domestic market.