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 Struggles to Launch Major Development Projects Amid Fiscal Federalism:
Since the introduction of fiscal federalism, Nepal’s central government has failed to advance significant new development projects. Large infrastructure initiatives stalled during the COVID-19 pandemic, and for the past eight years, the government has largely relied on continuing older projects dating back to the conflict and post-2008 election period. While investments in government buildings surged after 2017, progress in roads, water supply, and hospitals has lagged. Officials cite mounting debt obligations, revenue shortfalls, and reliance on foreign aid, such as the MCC power line, as key barriers. Without new signature projects, Nepal’s overall development pace risks long-term slowdown.

Government to Invest Over Rs 12.5 Billion in Expanding Three Major Hospitals:
The government is set to invest Rs 12.5 billion in expanding three hospitals—Patan Hospital in Lalitpur, BP Koirala Memorial Cancer Hospital in Chitwan, and Binaytara Cancer Hospital in Janakpur. According to Environment Impact Assessment (EIA) reports released for public feedback, Patan Hospital will double its capacity to 1,200 beds with an investment of Rs 10.7 billion. Binaytara Cancer Hospital will expand from 25 to 200 beds at a cost of Rs 1.45 billion. Meanwhile, BP Koirala Cancer Hospital will add PET-CT, Cyclotron, and bone marrow transplant facilities with Rs 3.2 billion in combined investment.

Banks to Operate Select Branches During Dashain Holidays to Ensure Essential Services:
Although all government offices will remain closed for Dashain festivals, banks across Nepal will keep select branches open to provide essential services. Customers can deposit, withdraw, open accounts, and access remittance services at designated branches. Global IME Bank will open 50 branches, Kumari Bank 50, Laxmi Sunrise 52, Sanima 63, and Prime Bank 48. Himalayan Bank will operate 29 branches, Nabil 19, Prabhu 18, NIC Asia 18, and NMB 18. Similarly, Rastriya Banijya, Nepal Bank, Agricultural Development Bank, and others will also run limited services. Opening hours vary between 10 a.m. and 3 p.m., depending on the bank.

Nepal’s Medical Licensing Exam Exposes Alarming Failure Rates Amid Private College Expansion:
Despite government approval to expand student quotas in private medical colleges, Nepal’s latest medical licensing exam has revealed a troubling reality: nearly 60% of examinees failed. Out of 1,077 MBBS and BDS graduates, only 421 passed, with success rates at just 39.09%. The Bachelor in Dental Surgery (BDS) stream fared worst—over 81% failed, as only 35 of 183 candidates succeeded. MBBS graduates had a 42% pass rate, with 386 out of 894 clearing the test. Critics argue weak teaching quality in private colleges is to blame. The results strengthen calls, led by Dr. Govinda KC, to restrict new colleges and admissions.

Autumn Climbing Season Begins on Mt. Dhaulagiri, World’s Seventh-Highest Peak:
The autumn climbing season has officially begun on Mt. Dhaulagiri (8,167m), the world’s seventh-highest peak, located in Dhaulagiri Rural Municipality-4 of Myagdi district. On Sunday, climbers from Spain, China, and France, supported by three Nepali Sherpas, successfully summited the peak, according to Seven Summit Treks. The rope-fixing team had opened the route two days earlier. Nepal’s Department of Tourism reports that seven women and 17 men from three groups have secured permits this season, generating Rs 5.07 million in fees. Known for unpredictable weather and high risks, Dhaulagiri was first summited by an Austrian team on May 13, 1960.

Nepal Rastra Bank Temporarily Increases Digital Wallet Deposit Limit for Festive Season:
Nepal Rastra Bank (NRB) has temporarily raised the deposit frequency limit in digital wallets operated by payment service providers to accommodate increased transactions during major festivals such as Dashain, Tihar, and Chhath. According to the Payment Systems Department, users can now deposit money into their wallets up to 40 times per day, compared to the previous limit of 10 times. The revised arrangement will remain effective from October 13–21 and again from October 20–27 (Nepali dates: Ashoj 13–21 and Kartik 3–10). Payment providers have also been instructed to report total transaction volumes and amounts to the central bank.

Gen-Z Movement Damages 30 Hotels in Nepal, Thousands of Jobs Lost:
The recent Gen-Z movement has caused damage to around 30 hotels in Nepal, leading to an estimated 2,200–2,500 job losses, according to a preliminary study by the Nepal Tourism Board (NTB). Hotels in Kathmandu and other regions sustained varying levels of damage, with five-star properties such as Hilton, Hyatt Regency, and Babar Mahal’s Barnabas among the hardest hit. NTB CEO Deepak Raj Joshi said the board is working with the private sector to assess losses and restore Nepal’s tourism image. Hilton, reportedly the worst affected, faces additional risks as it owes over Rs 5 billion in loans to banks.

Royal Enfield Distributor TG Auto Records Nearly Rs 4 Billion in Annual Business in Nepal:
TG Auto Group, the official producer and distributor of Royal Enfield motorcycles in Nepal, has reported an annual turnover of Rs 3.74 billion in FY 2024/25. Established in 2022 under Triveni Group, the company began operations in May 2023 and has quickly expanded its market presence. With a production facility in Bara spread over 100,000 sq. ft., TG Auto can manufacture 20,000 units annually. Last fiscal year, it sold 11,883 motorcycles, generating Rs 1.72 billion in net profit and Rs 1.97 billion in cash profit. Royal Enfield remains a premium motorcycle brand in Nepal’s two-wheeler market.

Nepali Banks Post Over NPR 9 Billion Profit in First Month of Fiscal Year Amid Liquidity Pressures:
Nepali banks and financial institutions earned over NPR 9 billion in profit during the first month of the current fiscal year, according to data from Nepal Rastra Bank (NRB). While last year’s Sawan (July–August) saw higher profits, this year’s decline reflects reduced interest income, higher operating costs, and changes in deposit and loan volumes. Commercial banks earned NPR 838 million, development banks NPR 82 million, and finance companies NPR 18 million. Total non-banking assets exceeded NPR 5 billion. Among top performers, Global IME Bank led with NPR 78.45 million profit, followed by Nabil Bank (NPR 71.64 million) and Nepal Investment Mega Bank (NPR 63.42 million).

NEA extends deadline for dedicated, trunk line dues to October 19:
The Nepal Electricity Authority (NEA) has extended the deadline for businesses to settle outstanding dues on dedicated and trunk power lines until October 19. An earlier notice had mistakenly set the deadline for November 3. The revision follows a board meeting on Friday, held under the direction of Energy Minister Kulman Ghising, which approved measures to expedite dues collection. Industries owing Rs 8.25 billion will now be able to clear their liabilities through a 28-installment payment plan, aimed at easing financial strain while ensuring gradual recovery. NEA said the extension is intended to provide both clarity and flexibility for businesses.

Mustang Sees 5% Rise in Foreign Tourists, But Protests and Weather Cloud Peak Season:
Mustang welcomed 108,686 foreign visitors between January and September 28, 2025, up 5.32% from 102,894 during the same period last year, according to the Annapurna Conservation Area Project (ACAP). In 2024, the district recorded 135,719 arrivals, leaving a shortfall of 27,033 to match that figure this year. ACAP’s Jomsom chief Rajesh Gupta said poor weather and disruptions from the recent Gen Z protests have slowed arrivals during the peak autumn season. Renowned for its Himalayan landscapes and cultural landmarks, Mustang’s top draws include Lo Manthang Palace, Muktinath Temple, Chhoser Cave, Dhumba Lake, and centuries-old monasteries.

Price of Himalayan Goats Drops Ahead of Dashain, Easing Burden for Consumers:
The price of Himalayan goats (bheda-chyangra) brought from Mustang for Dashain has declined this year, easing costs for middle-class families. Traders report that live goats are selling for Rs 35,000 each, down from Rs 40,000 last year, while per-kilo prices have fallen by Rs 50–100. Over 14,600 goats worth more than Rs 3.5 billion have been sold after health inspections, mainly sourced from Mustang, Dolpa, and Mugu. Kathmandu, Pokhara, Chitwan, and Butwal remain key markets. Farmers say challenges like snow leopard attacks and fodder shortages persist, but Mustang’s goat farming continues to provide a vital livelihood for highland communities.