KATHMANDU: Nepal News presents today’s snapshot of Nepal’s economic activities. Here’s a concise update on key market movements, policy developments, and financial trends shaping the economy:

Nepal Sees Surge in Digital Transactions Amid Rising Cyber Risks:
Digital payments in Nepal have surged since COVID-19, driven by mobile banking, QR codes, e-wallets, and cards. NRB data shows Asar 2082 e-commerce spending at Rs 1.46 billion, QR transactions at Rs 1.13 trillion, mobile banking Rs 5.3 trillion, wallets Rs 48.44 billion, and internet banking Rs 25.33 billion. Daily QR transactions now average Rs 3 billion. While card usage remains stable, QR codes dominate. Experts warn that system upgrades are needed, as online scams have cost over Rs 800 million. Authorities plan awareness campaigns and the pending IT and Cybersecurity Bill aims to strengthen legal protections for Nepal’s expanding digital economy.

Government Unveils Relief Package for Businesses Hit by Gen-Z Protests:
The government has announced a comprehensive relief package to support businesses damaged by arson and vandalism during the Gen-Z protests. Measures include 50% customs and excise duty waivers on re-imported assets, tax deductions for relief contributions, and recognition of uninsured stock losses as deductible expenses. Nepal Rastra Bank has extended repayment deadlines, introduced concessional loans at base rate +0.5%, and will provide up to 80% loan-to-value financing for vehicle replacements. The Insurance Authority will advance 50% of claims based on preliminary surveys. Officials expect these policies to aid immediate business recovery and stabilize the capital market post-Dashain.

Gen-Z Protests Slash Nepal’s Tourist Arrivals by 45% Ahead of Dashain Season:
Nepal’s peak tourist season has been hit hard as Gen-Z protests force large-scale cancellations of inbound travel packages. According to the Nepal Tourism Board (NTB), foreign arrivals in September dropped by up to 45% compared to last year, with numbers falling from over 3,300 to just 1,600. Travel operators report near-deserted destinations at a time usually marked by festivals and global visitors. NTB CEO Deepak Raj Joshi expressed concern but said digital promotion and the “Nepal Now” campaign would drive recovery. While some group tours are postponed rather than cancelled, hoteliers and homestays fear severe seasonal losses.

Online Shopping Gains Popularity in Nepal, but Malls Remain Vital During Festivals:
Digital shopping in Nepal has grown rapidly, with consumers buying clothes, gadgets, beauty products, and groceries via e-commerce platforms and social media like Facebook, Instagram, TikTok, and WhatsApp. Online shopping saves time and eliminates bargaining hassles, prompting many retailers to sell digitally as well. Despite this trend, malls and physical markets remain popular during festivals like Dashain and Tihar, when people prefer buying large quantities in person to avail discounts. Retail experts note that while online shopping thrives for non-essential items, essentials like groceries still rely on in-store purchases due to quality concerns and consumer trust.

Rahughat Hydropower Nears Completion Despite Repeated Delays:
The 40MW Rahughat Hydropower Project, promoted by Raghuganga Hydropower under the Nepal Electricity Authority, has reached its final construction stage with 90% physical progress. The civil contract, handled by India’s Jayprakash Associates at Rs 8 billion, has already seen three deadline extensions, now set for November 27, 2025. Project Manager Raj Bista said tunnels, dam, and powerhouse structures are nearly complete, while equipment installation has begun with over 500 workers mobilized even during Dashain. Delays stemmed from COVID-19, floods, landslides, and material shortages. Electromechanical contractor BHEL, responsible for equipment supply, faces its contract deadline on December 31.

Nepal Roads on High Alert as Heavy Rain Forecasted:
The Department of Roads in Nepal has placed teams on standby along high-risk highways following a three-day heavy rainfall forecast from October 4–6. The National Disaster Risk Reduction and Management Authority, using the Department of Hydrology and Meteorology’s seasonal bulletin, has instructed all divisions to prepare backup plans. Key routes, including Nagdhunga-Mugling, Mugling-Narayangadh, VP Highway, Kantipath, Tribhuvan Highway, and Daunne, are under heightened vigilance. Road crews and machinery have been deployed to clear potential landslides within three hours. District administrations have also advised avoiding travel on risky roads at night, with some roads temporarily closed for safety.

Mustang Customs Jam: 18 Sino Hydro Trucks Stuck as Ghami Khola Diversion Delays Persist:
Eighteen heavy cargo trucks of Sino Hydro Power Company remain stranded at the Nechung Customs Office after clearing customs due to the lack of a road diversion at Ghami Khola along the Jomsom–Korala road. Medium containers manage to cross via a temporary bridge, but officials say the structure cannot bear the load of 10-wheelers. Chief District Officer Bishnu Prasad Bhusal said a permanent solution will be sought after Dashain through joint efforts of traders and project authorities. The under-construction 40-meter-span bridge, contracted in 2018 at Rs 6.8 crore, has reached only 75% progress despite repeated delays.

CAAN Publishes New Domestic Airfare Rates in Nepal:
The Civil Aviation Authority of Nepal (CAAN) has released new maximum fare rates for domestic flights. Under the revised structure, the Kathmandu–Dhangadhi route has the highest ceiling at Rs 17,579, followed by Kathmandu–Nepalgunj at Rs 13,103 and Kathmandu–Bhadrapur at Rs 12,112. Other notable fares include Kathmandu–Biratnagar (Rs 9,785), Kathmandu–Pokhara (Rs 6,635), Kathmandu–Bharatpur (Rs 4,643), and Kathmandu–Simara (Rs 3,978). CAAN instructed airlines, travel agencies, and ticketing agents to sell tickets at or below these ceiling rates, ensuring passengers are not charged higher than the set maximum fare.

Norvic International Hospital Expands with Rs 36.7 Billion New Building:
Norvic International Hospital and Medical College is expanding its capacity with a new 300-bed facility, up from its earlier plan of 200 beds. The revised project cost has risen to Rs 36.74 billion, compared to the initial Rs 23.75 billion estimate, due to design changes and upgraded medical equipment. Construction is underway, with Rs 9.14 billion already spent by July 2025. Services are expected to begin by September 2026. The hospital, promoted by Chaudhary Group with 51% ownership through BLC Holdings, posted Rs 2.03 billion revenue in 2024, an 8% net profit, continuing steady annual growth.

Bhojpur Farmers Decry Exploitation as Medicinal Herbs Undervalued:
Farmers in Bhojpur have voiced frustration over not receiving fair prices for their medicinal herb produce. Despite cultivating valuable herbs such as chiraito, satuwa, and cardamom, growers say they are forced to rely on middlemen due to a lack of government-fixed pricing and limited market knowledge. Local farmer Nima Sherpa reported losses as traders dictate prices, while Pasang Sherpa added that rates are often set on rumors in villages, leaving farmers disadvantaged. Producers argue that the government should establish official pricing and facilitate broader market access to protect cultivators from exploitation and ensure sustainable herbal farming.