Kathmandu
Sunday, October 5, 2025

Nepal News Evening Economic Brief – October 05, 2025

October 5, 2025
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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.

NOC Ensures Petroleum Supply Despite Public Holiday

Nepal Oil Corporation stated that petroleum services will continue even on public holidays. Executive Director Chandika Prasad Bhatta said petroleum products fall under essential services, so service will not be interrupted on Sunday and Monday. “Even on public holidays, our service will not stop,” he said, adding that all offices will provide service. Since petroleum products are supplied via pipeline, floods and landslides have not affected transportation.

Finance Ministry Urges Public to Deposit Donations Only in Official Reconstruction Fund

The Ministry of Finance has requested that no money be deposited outside the official Reconstruction Fund, after receiving reports of multiple fake accounts being opened in the name of reconstruction. In its statement, the ministry said it has taken serious note of information that various non-governmental organizations, both inside and outside Nepal, have been collecting funds in the name of relief for families of martyrs and injured individuals from the Gen Z movement of September 8 and 9.

Domestic Flights Resume at Tribhuvan International Airport

With some improvement in Kathmandu’s weather, domestic flights have resumed, the Tribhuvan International Airport reported. Spokesperson Rinji Sherpa said planes previously grounded at various airports are now flying to Kathmandu with passengers. He added that flights will operate regularly if the weather remains favorable. Domestic flights had been suspended since Saturday morning due to bad weather.

Nepali Entrepreneurs Allowed to Take Loans from Indian Banks

Nepali businesspeople will now be able to access loans from Indian banks. The Reserve Bank of India (RBI) has allowed authorized dealer banks and their foreign branches to extend loans in Indian rupees to citizens of Nepal, Bhutan, and Sri Lanka. The decision was announced last Wednesday by the Monetary Policy Committee, headed by RBI Governor Sanjay Malhotra. This move is part of RBI’s gradual liberalization of regulations under the Foreign Exchange Management Act, aimed at facilitating smoother international trade and transactions.

Additional Domestic Flights Approved to Ease Passenger Rush

Domestic airlines were allowed to operate additional flights on Sunday to address heavy passenger demand after Saturday’s flight disruptions. According to Civil Aviation Authority of Nepal (CAAN), airlines were granted permission for extra flights, based on the need of passengers to reach their destinations and the pressure on the carriers. For Sunday alone, 280 two-way flights were scheduled from Tribhuvan International Airport.

Heavy Rains Halt Power Generation in 13 Hydropower Projects in Ilam

Continuous heavy rainfall and resulting floods and landslides have forced the shutdown of 13 hydropower projects with a combined capacity of 105 MW, all located in Ilam district. The unprecedented rainfall over the past three days has caused the most severe damage in Ilam. The Independent Power Producers’ Association of Nepal (IPPAN) reported that most hydropower projects in Ilam have suffered damage due to floods and landslides, disrupting electricity production.

Nepal Electricity Authority Maintains High Alert Amid Heavy Rain

The Nepal Electricity Authority has adopted heightened vigilance to protect electric infrastructure from potential damage caused by heavy and very heavy rainfall, including floods, landslides, and inundation. Staff are on standby to repair and restore lines immediately if service is interrupted. Preparations have been made by assessing potential damage to grid substations, power plants, distribution substations, and transmission lines due to disasters.

Nepal Insurance Authority Directs CSR Funds to Public Reconstruction Fund

The Nepal Insurance Authority has instructed insurance companies to deposit the funds earmarked for Corporate Social Responsibility (CSR) into the government-established Public Infrastructure Reconstruction Fund. Under existing regulations, insurance companies are required to spend at least one percent of their profits on CSR activities. The Authority has suggested that this amount be contributed to the Reconstruction Fund.

Industries Urged to Exercise High Vigilance Amid Continuous Rain

Continuous rainfall over the past two days has disrupted daily life and supply chains, prompting the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) to urge its member businesses to exercise high vigilance. The Department of Hydrology and Meteorology predicts rain for the next two days, leading the federation to advise all entrepreneurs to conduct business with heightened caution. FNCCI also appealed to businesses to maintain supply as much as possible despite difficulties, prevent shortages in the market, and avoid unauthorized storage.

Agro-Met Advisory Issued to Farmers Amid Heavy Rains

With continuous rainfall raising risks for agriculture, the Nepal Agricultural Research Council (NARC) and the National Agricultural Environment Research Center, in coordination with the Department of Hydrology and Meteorology, have issued an agro-met advisory. The advisory urges farmers to ensure proper drainage in vegetable fields, fruit orchards, and paddy fields nearing harvest. It also recommends halting pesticide spraying during this period. Additionally, farmers are advised to safeguard storage materials and structures located near rivers and streams, as they remain vulnerable to floods.

Pokhara Tourism Faces Dashain Slump Amid Protests and Bad Weather

Pokhara, which usually turns festive during Dashain with boating in Fewa Lake, paragliding, balloon rides, and hotels packed with domestic and foreign tourists, is unusually quiet this year. The Gen Z movement in early September disrupted earlier travel plans, with many Nepalis canceling their festive trips. Nearly half of the foreign bookings were also canceled, and even those few Nepali tourists who arrived in Pokhara returned home early due to adverse weather conditions. The tourism sector, which had just begun to recover, has been hit hard again by recent events.

Tourism in Sauraha Hit Hard During Dashain Season

Sauraha, known as a prime tourist destination during the Dashain festival, is facing an unprecedented slump this year. Continuous monsoon rains and the looming risk of floods and landslides have left the town deserted. According to hoteliers, the area has never experienced such emptiness. Hotels are nearly vacant, with occupancy rates below 10 percent. Dashain typically brings both foreign and domestic visitors, but this year the flow has been disrupted. While the impact of the recent Gen Z protests was beginning to ease, rainfall and flood-related risks have now kept tourists away.

Trekking Agencies Urge Alternative Route for Namche–Jorsalle Trail

The trekking route between Namche and Jorsalle in the Everest region has been completely blocked due to a landslide. In response, the Trekking Agencies’ Association of Nepal (TAAN) has issued a circular advising all trekking agencies and guides to use an alternative upper trail while traveling between Namche and Jorsalle. TAAN has also urged all trekkers currently on the route to follow the advisory to ensure safe travel in the region.

Tanahun Hydropower Work Resumes

Work on Package–3 of the 140 MW Tanahun Hydropower Project, long delayed, has resumed. The project team and contractors jointly visited the transmission line construction area and initiated efforts to address issues related to land acquisition and forest area usage. The project is coordinating with relevant authorities to obtain necessary consultation, coordination, and facilitation for using forest land and removing trees. Previously, transmission line construction had been delayed because approval to use forest land and remove trees had not been granted.

Power Disruption in Bara’s Simraungadh Due to Substation Flooding

In Bara, water entered the Nepal Electricity Authority’s Kalaiya Substation, causing electricity service disruption in Simraungadh. Water has been pumped out from the Kalaiya Substation using the municipality’s fire engines and motors, but some water remains in the control room. Officials at Simraungadh Substation said electricity service will resume only after the Kalaiya station is operational.

Mahabir Agro Products Sees 50% Drop in Business

Mahabir Agro Products’ business has declined by 50 percent compared to 2024. In 2024, the company recorded a turnover of Rs 3.16 billion. Promoted by Kedia Organization, the company’s business fell to Rs 1.517 billion in 2025.

Gold Price Hits All-Time High in Domestic Market

Gold prices in Nepal have reached an all-time high today. According to the Federation of Nepal Gold and Silver Dealers Association, the price of hallmark gold increased by Rs 7,400 per tola to Rs 230,600. Previously, on September 28, gold was trading at Rs 223,200 per tola. Silver prices also set a new record today, rising by Rs 120 per tola. Last Sunday, silver was trading at Rs 2,810 per tola.