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 Drops 19.43 Points, Settles at 2528

On Tuesday, the Nepal Stock Exchange (NEPSE) index fell by 19.43 points, closing at 2528. Although the market showed initial gains at the opening, it declined within the first half-hour of trading. Trading volume also dropped, with today’s turnover at Rs 3.36 billion, compared to Rs 4.97 billion recorded the previous day. Among listed companies, 33 saw their share prices rise, 214 declined, and 5 remained unchanged. Sector-wise, Trading shares increased the most by 1.48%, while Hydropower stocks fell the most by 1.71%.

Finance Minister Khanal Holds High-Level Meetings in Washington D.C.

Finance Minister Rameshore Khanal, attending the World Bank and IMF Annual Meetings in Washington D.C., is engaged in a series of high-level meetings. On Tuesday, he met separately with Anna Bjerde, Managing Director of the World Bank Group, and Bo Li, Deputy Managing Director of the IMF. During his meeting with Bjerde, Minister Khanal said that the main responsibility of Nepal’s new government formed after the Gen Z protests is to conduct timely elections, while also emphasizing good governance and accountability.

Government Scraps Longstanding Cash Subsidy System for Exports

The government’s long-running cash subsidy scheme for export promotion has reached the phase of cancellation. The Department of Industry recently issued a notice stating that it will not accept new applications in FY 2025/26 that would create additional liabilities.
As the subsidy for exports made in one fiscal year is paid in the next, uncertainty remains over the payment for last year and the settlement of older arrears.

Bangladeshi Firm Begins Loan Portfolio Review of 10 Major Banks

The Bangladeshi firm Howlader Yunus & Co., selected to review the loan portfolios of 10 major commercial banks, has begun its work simultaneously in all banks. Offsite data analysis had already started before Dashain, and from Sunday, joint teams of NRB representatives and Nepali chartered accountants chosen by Howlader began field work. According to NRB, the teams will collect policies and data before Tihar and conduct onsite analysis and monitoring after Chhath.

NEA to Cut Power Supply to Industries Defaulting on Premium Charges

The Nepal Electricity Authority (NEA) is set to cut power lines of industries that have not paid additional premium fees for trunk lines and dedicated feeders. The authority has given a final deadline until October 19 for defaulters to clear their dues. NEA Board of Directors has already decided to recover the outstanding amounts and has issued a public notice stating that power lines of industries failing to pay by the deadline will be disconnected.

Nepal Airlines Corporation to Be Split into Three Entities

The Nepal Airlines Corporation (NAC) will be divided into three separate entities. This decision follows the recommendations of a report prepared by the Civil Aviation Sector Reform Committee formed by the previous government. The committee submitted its report to then interim Prime Minister Sushila Karki on September 28, and the cabinet has decided to forward it to the concerned ministry for implementation. As per the report, the three entities will be: Nepal Airlines Corporation, Nepal Airlines Company, and Nepal Aviation Service Provider Company.

Nepal Rastra Bank Will Not Sell Gold Coins This Year

The Nepal Rastra Bank (NRB) will not sell gold coins to the public this year. The central bank decided not to distribute them as no new gold coins were minted. As a result, unlike in previous years, the public will not be able to buy gold coins on Dhanteras. However, silver coins will still be available, and there is no need to wait for Dhanteras to buy them.

Nepal Airlines Cancels October 19 Kathmandu–Guangzhou Flight

The national flag carrier, Nepal Airlines Corporation (NAC), has announced the cancellation of its scheduled Kathmandu–Guangzhou flight on October 19. In a statement issued on Monday, NAC spokesperson Subas Dangol said the flight was canceled due to the corporation’s internal reasons. He added that all passengers booked for that flight have been accommodated through alternative arrangements. According to the airline, 68 passengers had purchased tickets for the October 16 Kathmandu–Guangzhou flight, while 41 tickets had been sold for the October 17 Guangzhou–Kathmandu return flight under its regular flight schedule.

607 Government Vehicles Damaged During Gen Z Protest Compiled for Auction

A total of 607 government vehicles were damaged by fire and vandalism during the Gen Z-led protests around Singha Durbar.
The Ministry of Urban Development has collected 552 vehicles from related agencies and parked them near the Parliament building, while the Ministry of Physical Infrastructure has gathered another 55 damaged vehicles. The Ministry of Finance has directed that all of these vehicles be auctioned off as scrap.

NRB to Invest Rs 3.30 Billion from Subsidy and Pension Fund

The Nepal Rastra Bank will invest Rs 3.30 billion from its subsidy and pension fund into banks and financial institutions. According to a notice, the investment will be made for 366 days in Class A, B, and C banks and financial institutions.

FNCCI Urges Government to Reinstate Cash Subsidy for Exports

The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has urged the government to reinstate the cash subsidy system for exports. FNCCI stated that the suspension of the subsidy will severely affect investment, exports, and employment.
The government had introduced the subsidy in FY 2011/12 to promote the export of goods with domestic value addition as Nepal’s export share in foreign trade continues to decline and the trade deficit widens.

Nepal Earns Rs 88.66 Billion from Tourism in One Year

Nepal’s tourism sector earned Rs 88.66 billion through foreign currency exchange from international tourist arrivals in one year.
According to the Nepal Rastra Bank’s report for FY 2024/25, a total of 1.146 million tourists visited Nepal, generating revenue exceeding Rs 88.5 billion from the tourism sector.

Bhote Koshi Hydropower Plant Resumes Operation After Gen Z Obstruction Ends

The 45 MW Bhote Koshi Hydropower Project has resumed power generation after being shut down for a long time due to local obstructions. Operation resumed after the promoter company, Bhote Koshi Power Company Pvt. Ltd., agreed to allocate 10% of its shares to Gen Z Public Investment Ltd. Under the deal, all directly affected locals will be members of the investment company, which will then receive the allocated shares.

New Pilots Begin Base Training at Gautam Buddha International Airport

The Nepal Airlines Corporation has begun base training flights for newly inducted Airbus A320 pilots at Gautam Buddha International Airport in Bhairahawa. Airbus instructor pilot Dipuraj Juarchan trained new pilots Sujan Puri and Ankul Aryal by flying an empty aircraft from Kathmandu to Bhairahawa. Since Kathmandu airspace is busy and surrounded by hills, it is considered challenging for new pilots to train there.

Rastriya Banijya Bank Provides Grants to 13 Industries for Energy Efficiency

Reaffirming its commitment to sustainable industrial development, Rastriya Banijya Bank Ltd. has distributed financial grants to industries implementing energy efficiency measures under the Renewable Energy and Energy Efficiency Programme–Nepal (REEEP). At a program held on Tuesday, the bank provided over Rs 40 million in grants to 13 industries in the second phase of the initiative.

2.38 Million Farmers Registered Under National Database Program

A total of 2.38 million farmers have been registered under the government’s Farmer Registration Program aimed at providing subsidies and assistance through an electronic system. According to the Agriculture Information and Training Centre, farmers are being categorized into four groups—subsistence, small, medium, and large—based on their income levels. Identity cards will be distributed to all categorized farmers.

Apples Worth Rs 330 Million Sold from Jumla This Year

Apples worth Rs 330.75 million have been sold from Jumla district this year. Farmers in the district produced varieties such as Gala, King Red, and Fuji. According to the Jumla Agriculture Development Office, about 4,725 metric tons of apples were shipped to other districts in the first three months of FY 2025/26.

Third Tihar Flora Expo Begins at Bhrikuti Mandap

The Third Tihar Flora Expo has begun today at Bhrikuti Mandap in Kathmandu, organized by the Nursery Entrepreneurs Association Nepal. The event is promoted by the Floriculture Development Centre and the Department of Plant Resources. The fair features a display and sale of various species of flowers, ornamental plants, and agricultural saplings produced by Jyoti Nursery and Fruit Nurseries. According to the organizers, there are 70 stalls in the fair.

Garima Development Bank Announces Dividend

Garima Development Bank has announced dividends for its shareholders. The Board of Directors decided to distribute a 10.53% dividend from the accumulated profits up to the last fiscal year.
This includes a 6% bonus share and a 4.53% cash dividend (including tax).

Himalayan Life Insurance Appoints Kapil Kumar Dahal as CEO

Himalayan Life Insurance has appointed Kapil Kumar Dahal as its new Chief Executive Officer (CEO). He was previously serving as Deputy CEO and was given acting responsibility following the resignation of Manoj Kumar Lal Karna. The company’s board meeting held on October 13 decided to hand over the CEO position to Dahal.

Pokhara Finance and Samriddhi Finance Receive Merger Approval

The Nepal Rastra Bank has granted approval for the merger between Pokhara Finance Ltd. and Samriddhi Finance Ltd. After the two companies signed a merger agreement and applied for a Letter of Intent (LOI), the NRB granted approval on October 13. The institutions must complete required procedures and obtain approval from their general assemblies within three months.

Gold Price Increases by Rs 8,100 Per Tola in a Single Day

The price of gold rose by Rs 8,100 per tola in a single day. According to the Federation of Nepal Gold and Silver Dealers’ Association, the price on Tuesday was fixed at Rs 248,500 per tola, the highest in Nepal’s history. On Monday, hallmark gold was traded at Rs 240,400 per tola. Meanwhile, the price of silver increased from Rs 3,220 per tola on Monday to Rs 3,325 per tola on Tuesday.