Kathmandu
Sunday, September 21, 2025

Nepal News Evening Economic Brief – September 21, 2025

September 21, 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.

NEPSE Sees Slight Recovery; Trading Hits Rs 9.18 Billion

On Sunday, the Nepal Stock Exchange (NEPSE) rose by 3 points, following a sharp drop of 160.33 points last Thursday.  The index closed at 111.70 points. Trading on Sunday reached Rs 9.18 billion, resulting in a 4.44% increase in market capitalization. Out of 252 companies traded on NEPSE, 224 saw their share prices rise, while 28 companies experienced a decline. Nine different companies’ shares surged by 10% each, hitting the circuit limit.

NEPSE Suspends Final 15-Minute Average Calculation Method

The Nepal Stock Exchange (NEPSE) has suspended the calculation method for the final 15-minute average. NEPSE announced on Sunday that the calculation method has been suspended starting today. The decision to suspend the method was made in a meeting of the Securities Board of Nepal (SEBON). Based on that decision and the instructions issued by the Board, NEPSE has implemented the suspension of this calculation method.

NRB Facilitates Exchange of Torn or Damaged Notes
Nepal Rastra Bank and financial institutions exchange notes that are torn, soiled, partially burned, or dirtied. However, notes damaged during protests require a specific process, including a recommendation from the police or government agency verifying how the money was destroyed. In routine cases, government recommendations are not required for exchanging small numbers of damaged notes.

Nepal Fully Ready to Welcome Tourists, Says NTB
Nepal sent a message of full readiness to welcome tourists at the 12th Asian Tourism Fair held in Dhaka, Bangladesh. Organized from September 18 to 20 at the International Convention City Basundhara, the event saw significant participation from Nepali tourism companies following the recent Gen Z movement challenges in Nepal. The participation conveyed to Bangladeshi tourism professionals and tourists that Nepal has returned to normalcy and is prepared for the safe reception of visitors.

NRB Withdraws Rs 70 Billion Amid High Liquidity
Nepal Rastra Bank has withdrawn Rs 70 billion in deposits on Sunday due to excessive liquidity. The central bank used the deposit collection mechanism through bidding. Currently, total deposits have exceeded Rs 7.2 trillion. The central bank has been managing liquidity and interest rates through deposit collection instruments and standing deposit facilities. Only banks and financial institutions classified as ‘A’, ‘B’, and ‘C’ and authorized by the central bank participated in the bidding.

Rs 9.80 Billion Allocated for Subsidized Loan Interest Grants
The government has disbursed approximately Rs 9.80 billion for interest subsidies on concessional loans. The Ministry of Finance stated that under the Unified Procedure for Concessional Loan Interest Grants, 2025, the amount has been allocated for the current fiscal year. A ministerial decision allows Nepal Rastra Bank to reimburse interest subsidies from the previous seven quarters.

Investors Submit Six Recommendations to Governor for Stock Market Improvement
Investors presented six key suggestions to Nepal Rastra Bank Governor Dr. Biswo Nnath Poudel to improve the stock market. The recommendations included allowing banks to invest more freely, revising limits based on primary capital, removing the Rs 250 million ceiling on personal share-backed loans, lifting the 25% dividend cap on microfinance institutions, and granting these institutions operational independence and competitive flexibility.

Nepal Airlines to Launch Direct Kathmandu–Guangzhou Flights
National flag carrier Nepal Airlines will begin direct flights between Kathmandu and Guangzhou, China, starting September 25. Executive Chairman Yubaraj Adhikari stated that all technical preparations are complete, and the airline has received the necessary flight permissions. Three regular weekly flights have been scheduled.

Public Vehicles Leaving Valley During Dashain to Use Nagdhunga Tunnel
Public transport vehicles exiting the Kathmandu Valley during Dashain will use the Nagdhunga tunnel to manage passenger flow and reduce road congestion. Minister of Physical Infrastructure and Transport Kulman Ghising instructed authorities to make one tunnel operational immediately. Although there are two tunnels for entering and exiting the valley, neither is fully operational.

Companies to Allocate Up to 10% Shares to Affected Locals
Securities registration and issuance regulations permit companies to allocate up to 10% of their issued capital to affected locals. Companies have been following this provision by reserving 1–10% of shares for locals, and unsold shares are added to the public offering. Locals must personally visit the collection center in the relevant area with citizenship proof to claim their shares, according to merchant bankers.

Contracts Pending for 2,272 km of Road Paving Nationwide
Out of 23 key road projects across Nepal, contracts for paving 2,272 kilometers remain pending. According to the Department of Roads, this includes national pride projects, the Karnali Corridor, North–South Kaligandaki Corridor, transformational projects, and the East–West Highway. Additionally, contracts are pending for opening 109.5 km of tracks, constructing 554 km of gravel roads, and building 299 bridges.

Three New Apple Varieties Recommended
The Rajikot Horticulture Research Center has recommended three new apple varieties after 12 years of research in Jumla. Senior scientist Rajkumar Giri stated the new ‘spur varieties’ are Star Crimson Delicious, Bright N Early, and Stark Spur Golden. These varieties start bearing fruit within two to three years, produce annual yields, have short trees, and can be planted at less than six-meter spacing.

Investment Conference in Sudurpaschim in Doubt
The investment and development conference planned to boost development in Far-West Province is uncertain. Preparations for investor commitments, legal amendments, new laws, and coordination with development partners were near completion. However, the Gen Z movement’s violent activities, which damaged provincial government infrastructure, have caused uncertainty about when the conference will occur.

Bagmati Province to Review Budget
Bagmati Province has decided to review the current fiscal year budget following significant damage to government structures during the Gen-Z protests on September 8-9. The provincial cabinet also decided to provide free medical treatment to those injured in the protests and express condolences to families of the deceased, according to government spokesperson and Minister for Finance and Planning Prabhat Tamang.

Industrial Expansion Underway in Hetauda, Makwanpur
The Hetauda Industrial Area in Makwanpur is witnessing an increase in industrial activity, with two new factories preparing to commence operations: Himalaya ACP Boards Pvt. Ltd. (aluminum boards) and Tika Industries Pvt. Ltd. (chocolate). Industrial Area Management Office official Rameshraj Nepal said that after canceling contracts for two long-closed factories, agreements were made for the new industries, which are expected to start production within one to two weeks.

Birgunj Metropolitan Revises Budget
Birgunj Metropolitan has revised the FY 2025/26 budget to prioritize reconstruction after the Gen-Z protests onSeptember 8-9, during which the municipal office and all structures were destroyed by fire, vandalism, and looting. Mayor Rajeshman Singh stated that the revised budget aims to restore municipal services promptly and focus on reconstruction.

Mules Disappearing from Humla as National Road Network Expands
Traditional mule transport in Humla is gradually disappearing. As the district became connected to the national road network, mules previously used for transporting salt, rice, oil, food grains, and daily essentials to remote areas like Simkot are now largely unused. Previously, mules were integral to the local economy, culture, and lifestyle.

Syafrubensi–Rasuwagadhi Road Repaired After Flood Damage
The Syafrubensi–Rasuwa Gadhi road, damaged by floods on July 8 and July 30 in the Lhendekhola area, has been repaired. The Department of Roads managed reconstruction from Timure’s Tatopani Danda to Rasuwa Gadhi, with support from the Rasuwa Gadhi Hydropower Project. Due to incomplete slope cutting above Timure, traffic is open near the Bhote Koshi River and will remain operational during winter until water flow increases.

Last Day to Apply for Sagar Distillery IPO
Sunday marks the final day to apply for Sagar Distillery’s IPO, which opened for application on September 15. The IPO was initially issued to Nepalis working abroad and is now available to the general public. The company offered a total of 1,190,640 shares, representing 20% of its Rs 726 million paid-up capital, equivalent to Rs 145.2 million.

Sanima Bank Proposes 7.3685% Cash Dividend
Sanima Bank Limited has proposed distributing a 7.3685% cash dividend (including tax) from accumulated profits of FY 2024/25. The proposal was approved at the board meeting on Friday. The bank’s paid-up capital currently stands at Rs 13.5815 billion, and the cash dividend, including tax, will total approximately Rs 1.017 billion.

Gold and Silver Prices See Moderate Rise in Market
Today, gold and silver prices in the market showed a modest increase. According to the Federation of Nepal Gold and Silver Dealers Association, gold reached Rs 217,100 per tola and Rs 186,130 per 10 grams. Silver also rose to Rs 2,620 per tola and Rs 2,246 per 10 grams.