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.

Normalcy Returns Nationwide After New Government Formation:
Life across Nepal is gradually returning to normal with the formation of a new government under former Chief Justice Sushila Karki. The curfews and prohibitory orders imposed in several parts of the country in the aftermath of the Gen Z protests have now been lifted. Citizens have resumed their daily routines, businesses have reopened, and a sense of relief and optimism is visible, particularly among the youth.

The law and order situation is stabilizing, bringing much-needed calm after weeks of unrest. Responding to the demands of the younger generation, who pushed vigorously for anti-corruption measures and good governance, the new government has pledged to uphold these priorities.

The administration has been tasked with conducting elections within the mandated timeframe and ensuring a smooth transfer of power. By restoring stability and committing to accountability, the government seeks to meet the aspirations of the public and guide the country toward democratic renewal.

FNCCI Urges Security, Stability and Partnership After Gen-Z Protests:
The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has called on the government to ensure peace, security, and an enabling environment for the smooth operation of enterprises, stating that private sector-led growth is vital for economic recovery and stability.

In a statement issued after the Gen-Z anti-corruption protests, which caused extensive damage to industries, offices, and private property, FNCCI condemned the attacks as “deplorable” and urged the government to guarantee that such incidents do not recur. It emphasized that reconstruction and rebuilding will largely depend on private sector resources, underscoring the need to safeguard investments.

FNCCI acknowledged the concerns of youth regarding governance, corruption, employment, and revenue mobilization, and expressed readiness to coordinate with stakeholders to steer the country toward progress. Highlighting the private sector’s 81% share of the economy, 80% of revenues, and 86% of jobs, FNCCI stressed that inclusive growth, investment promotion, and good governance are essential to building a prosperous and just society.

Public Transport Resumes in Kathmandu Valley After Curfew Lifted:
Public transport services in the Kathmandu Valley resumed on Saturday after being halted since Tuesday due to the Gen Z demonstrations. Superintendent of Police Deepak Giri, spokesperson for the Valley Traffic Police Office, confirmed the gradual restoration of services this morning. While only a handful of vehicles were seen on the roads Friday, traffic and passenger flow increased noticeably today. Public buses have already departed for Kathmandu from Chitwan, with more services expected to operate toward other districts this evening. The Nepal Army’s curfew and prohibitory orders, imposed earlier in the week, were officially lifted today.

FNCCI President Calls for Resilience as Businesses Suffer Heavy Losses in Gen-Z Protests:
The President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has urged the private sector to stay united and rebuild after widespread destruction of industries, businesses, and private property during the Gen-Z protests of September 8–9 (Bhadra 23–24).

Reflecting on his journey from starting with no seed capital to creating enterprises that now employ over 20,000 Nepalis directly, the FNCCI chief said the recent violence had caused billions in damages, jeopardizing jobs and eroding investor confidence. Yet he emphasized that despair is not an option.

He called on entrepreneurs to treat the crisis as an opportunity for renewal—reinvesting, creating jobs, and restoring hope. Stressing that the private sector drives more than 80% of Nepal’s economy and generates over 86% of employment, he appealed for collective resilience: “The fire may burn bricks and wood, but it cannot destroy our determination. We must rise again to build a stronger Nepal.”

Gen-Z Protests Leave Lasting Scars on Nepal’s Tourism:
The Gen-Z anti-corruption demonstrations of September 8–9 (Bhadra 23–24) inflicted heavy losses on Nepal’s economy, causing both human and physical damage. Protesters attacked the state’s three pillars—the executive, legislature, and judiciary—as well as the media, often called the fourth estate. Private properties and industries were also badly hit, while hospitals continue to treat large numbers of injured demonstrators.

Tourism, Nepal’s international identity and economic lifeline, suffered a serious setback just as the peak season was about to begin. Several tourist infrastructures were damaged, and hotel bookings saw partial cancellations. Industry estimates put hotel losses alone at more than Rs 25 billion, with the Hilton Kathmandu suffering over Rs 8 billion in damages.

Despite the blow, experts remain optimistic. Former Finance Secretary Rameshore Khanal said Nepal’s tourism will rebound quickly, stressing the need for positive publicity. Economists Sameer Khatiwada and industry leaders including NTB CEO Deepak Raj Joshi and Hotel Association President Binayak Shah echoed similar confidence, citing Nepal’s resilience after past crises such as the earthquake and COVID-19.

Tourism bodies including PATA Nepal, TAAN, and the Nepal Mountaineering Association jointly appealed for peace, stability, and tourism-friendly policies to restore confidence.

While uncertainty looms, stakeholders agree that Nepal’s tourism, backed by strong international networks and regional markets like India and China, still holds bright prospects for rapid revival.

Finance Ministry Reports Major Disruptions After Gen Z Demonstrations:
The Ministry of Finance has confirmed significant disruptions to its services following widespread vandalism and arson during the recent Gen Z demonstrations. Several key government entities, including the Ministry itself, Customs and Tax Offices, and the District Treasury Controller Office, suffered extensive damage. Many offices are currently limited to delivering only basic services.

According to Spokesperson Tanka Prasad Pandey, parts of the Budget Division were severely damaged, though three major software systems and their data remain safe. Twenty-five government vehicles were destroyed, 20 partially damaged, and 40 motorcycles burned.

Customs services have partially resumed, supported by the Automated System for Customs Data (ASYCUDA), while the Inland Revenue Department is providing only online services. Dozens of taxpayer offices across the country were destroyed.

Most government accounting systems remain offline, except for the Revenue Management Information System (RMIS). Officials say restoration of SUTRA, TSA, and CGAS awaits instructions from the new government.

Jamunaha Border Partially Reopens After Gen Z Protests:
The Jamunaha border crossing between Nepal and India in Banke district, closed due to the recent Gen Z protests, was partially reopened on Friday by Indian authorities. The border had been sealed following arson and vandalism, but as the situation in Nepalgunj and surrounding areas stabilized, India eased restrictions.

Ramesh Singh Rawat, chief of the Rupaidiha Police Station, said limited movement was permitted from Friday, though strict identity checks and questioning remain in place. Previously, only Nepali patients, ambulances, and emergency cases were allowed entry.

Nepali security forces are also conducting thorough checks, with Armed Police Force personnel and the Nepali Army deployed to maintain order. On Tuesday, protesters had torched the Jamunaha police post, area police office, and customs passenger section. Nepali Army took command of border security on Thursday, allowing gradual restoration of law and order at the crossing.

Gen Z Protests Disrupt Border Trade, Hit Customs Revenue at Jaleshwar:
Destructive incidents linked to the Gen Z movement have severely disrupted cross-border trade at Nepal’s southern frontier. Stricter checks at the Indian checkpoint have brought movement and customs clearance to a near halt since Tuesday.

Following the jailbreak on September 9 and an arson attack on the Jaleshwar Traffic Police on Thursday, Indian and Nepali authorities have imposed strict security measures. Jaleshwar Customs, typically busy with heavy goods traffic, now appears largely deserted. More than 30 trucks, including consumer and industrial goods and a tanker of aviation fuel, remain stranded, while some consignments were allowed to move only after coordination with the Armed Police Force and Nepal Police.

According to Customs Chief Rajendra Basnet, daily revenue collection, normally Rs. 3–4 million, has fallen to zero since Tuesday. Traders report that Indian freight operators are avoiding the border due to safety and logistical concerns, further affecting trade ahead of the Dashain season.

Bhatbhateni Resumes Services Across Nepal After Protest Violence:
Bhatbhateni Supermarket has resumed operations from multiple outlets after suffering damages during the Gen-Z protests marked by arson and vandalism.

According to the company, stores are now open in the Kathmandu Valley—including Tokha, Anamnagar, Satdobato, Sanagaun, Patan, Kalanki, RadheRadhe, Balaju, and World Trade Center—as well as outside the Valley in Nepalgunj, Janakpur, Birgunj, Butwal, Dhangadhi, and Bhairahawa.

In a social media statement, Bhatbhateni expressed gratitude to its customers, describing the chain not only as a store but as part of a family: “Thank you for your patience, your support, and your trust in us. We are back to serve you with the same care and commitment you have always relied on. Let’s move forward together toward brighter and more peaceful days.”

Deposits Remain Safe Despite Attacks on Banks, Say Bankers:
The Nepal Bankers’ Association (NBA) has assured the public that deposits in banks and financial institutions remain safe despite widespread vandalism and arson during the recent Gen Z protests and subsequent government crackdown.

Several branches, extension counters, and ATM machines were damaged across the country, though the exact extent of losses is still being assessed. “We are collecting data on the damage caused to banks and financial institutions. Without verified figures, it is premature to estimate,” said NBA President Santosh Koirala. He emphasized that customers’ savings and the banking database have not been affected.

However, Koirala acknowledged that banks are worried about the broader political and economic environment. Already struggling with low interest rates, rising bad loans, and excess liquidity, the sector now faces further uncertainty. Industrial and business losses from the unrest could also affect loan recovery in the future.
“The coming days will be more challenging. We must move forward with patience and responsibility,” Koirala said.

Gold Hits Record Rs 215,800 per Tola Amid Fed Rate Cuts:
Gold prices in Nepal surged by Rs 5,400 per tola last week, reaching a record Rs 215,800 per tola, the Federation of Nepal Gold and Silver Dealers’ Association (FENEGOSIDA) reported. Prices rose from Rs 210,400, fluctuating throughout the week, including a Rs 3,100 jump on Tuesday. The increase comes as global gold markets reacted to weaker employment data and spotty inflation, prompting expectations of Federal Reserve rate cuts, Reuters reported. Silver also gained Rs 75 per tola, rising to Rs 2,565 per tola from Rs 2,490.

Gen Z Protests Trigger Over Rs 10 Billion in Insurance Claims Across Nepal:
Insurance claims from the violent Gen Z protests are projected to exceed Rs 10 billion (USD 75 million) as damage assessments continue. The September 9 unrest caused widespread arson, vandalism, and looting in Kathmandu and other districts, impacting Bhatbhateni outlets, Hilton Hotel, Ncell, Chaudhary Group, vehicle showrooms, and private homes. Claims fall under riot and terrorism coverage, with domestic reinsurer Nepal Reinsurance bearing a major share. Banks and financial institutions have resumed limited operations. Regulators urge insurers to expedite settlements, while economists warn that property damage and inadequate protection may erode investor confidence and slow economic recovery.