KATHMANDU: Nepal News brings you a daily roundup of economic activities in Nepal. This summary provides concise updates across key sectors, keeping you informed on the latest market trends, policy changes, and financial developments. Here are today’s top economic highlights.

NEPSE Drops 6.55 Points, Closes at 2,719 Amid Late Recovery

On Thursday, the share market fell by 6.55 points from the previous day, with the NEPSE index closing at 2,719. The market showed some recovery in the final 40 minutes but could not turn positive. Before the weighted average calculation, the market was down by less than 1 point, but after the calculation, it fell 6 points. At 2:20 PM, the index dipped to 2,703 points before gradually recovering. Trading volume increased to Rs 514 million compared to Rs 472 million the previous day.

Full Audit of 10 Banks Moves Ahead

The process of conducting a full audit of 10 large commercial banks has moved forward under the condition that the audit report will not be made public. The work proceeded after Nepal Rastra Bank and the International Monetary Fund (IMF) agreed with the bankers’ proposal not to disclose the audit report. Bankers had long been quietly opposing the idea of having a full audit carried out by an international independent auditor, fearing their weaknesses would be exposed.

Insurance Companies Require Approval Only for Subsidiary Investments

Insurance companies will now only need the approval of the regulatory body, the Nepal Insurance Authority, when investing in subsidiaries or other insurance companies. In other sectors, companies can directly invest as long as they remain within the prescribed limit. The Authority issued the “Insurance Investment Directive, 2025” on Wednesday, further systematizing the provision for investments in subsidiaries.

Draft of Payments and Settlement Act Prepared

The government has prepared the draft of the Payments and Settlement (First Amendment) Act, 2025. The Ministry of Finance stated that ambiguities, incomplete provisions, and technical shortcomings in the existing act had created challenges in the overall payments system, hence the need for new policy measures. The draft includes provisions to make digital payment systems such as e-wallets more transparent and secure.

India’s GST Cut Raises Concerns for Nepal’s Economy

Nepali industrialists and businesspeople have expressed concern that India’s recent reduction of the five-tier Goods and Services Tax (GST) to just two tiers will negatively impact Nepal’s economy. They worry that India’s latest tax policy will increase smuggling of daily consumables into Nepal and disrupt trade at customs checkpoints. Since India reduced GST on daily consumables from 18% and 12% to only 5%, the prices of these items in the Indian market will drop sharply.

Direct Pokhara–Bhutan Flights to Begin

Direct flights from Pokhara International Airport to Bhutan are set to begin. Bhutan Airlines will operate charter flights on the Paro–Pokhara–Paro route. Universal Tours and Travels (UTT) has announced that it will run four charter flights starting September 28. Flights have been scheduled for September 28, October 2, 6, and 10, UTT director Paras Prasai confirmed. Bhutan Airlines has a seating capacity of 126. Along with the charter flights, the company has also introduced a travel package of four nights and five days, Prasai said.

Dairy Farmers to Receive Rs 1.9 Billion Before Dashain

Industrialists have agreed to pay nearly Rs 1.9 billion to dairy farmers before Dashain. The decision came after the Central Dairy Cooperative Union announced a protest program demanding Rs 3.5 billion in arrears for milk supplied over the past six months. With the Ministry of Agriculture and Livestock Development taking the initiative, payment before Dashain has been assured. Following the agreement on Wednesday, dairy farmers withdrew their planned protest.

Cooperation to Increase Nepali Exports to Europe

Two organizations have agreed to cooperate in boosting exports of Nepali goods to Europe and attracting European investment in Nepal. The Federation of Export Entrepreneurs Nepal (FEEN) and the Nepal–German Chamber of Commerce and Industry (NGCCI) will work together to enhance trade and investment promotion with Europe. The Federation of Export Entrepreneurs Nepal is an umbrella organization of exporters, consisting of eight commodity associations and individual exporters.

Import of Chemical Fertilizers Begins After Paddy Season

With the paddy cultivation season nearing its end, the import of chemical fertilizers has begun. This is part of the quota for the current fiscal year 2025/26. Agriculture Inputs Company Limited and Salt Trading Corporation have started importing fertilizers. The Corporation has brought in 11,300 metric tons of DAP, while the Company has imported 2,500 metric tons out of 3,000 metric tons contracted. Since the paddy planting season has already passed, the incoming fertilizer will now be more suitable for winter crops rather than paddy.

Vehicles Can Travel via Nagdhunga Tunnel During Dashain
During Dashain, it will be possible to travel outside the Kathmandu Valley via the Nagdhunga Tunnel. The Ministry of Physical Infrastructure and Transport stated that discussions are underway regarding vehicle movement for those leaving the valley during Dashain and returning afterward. Discussions are ongoing for trial operations of vehicles through the Nagdhunga Tunnel during Dashain.

Trade Disruption as Rasuwa and Tatopani Border Posts Blocked Before Dashain
With Nepal’s main festivals approaching, trade has been disrupted as the key northern border posts, Rasuwa and Tatopani, are blocked, leaving goods in 1,900 containers stranded. The goods, imported by Nepali traders in anticipation of orders for Teej, Dashain, and Tihar, were meant for the festival season. These items should have reached markets across the country from the second week of August. However, Rasuwa, connecting to China, is completely shut, and Tatopani faces landslides whenever it rains, causing road subsidence and landslides from above.

Apple Harvest Stuck in Bajura Due to Blocked Roads

In Bajura, apples have begun ripening, but harvested apples are lying in orchards because roads are blocked. The Martadi–Kolti road has been obstructed for a long time, causing harvested apples to remain unsold. The road has been closed since last June. “Apples are ripening and the orchards are turning red, but there’s no way to sell them,” said Man Bahadur Rawat, an apple farmer from Budhinanda Municipality. According to him, apples ripen from the first to the last week of Bhadra, and if they cannot be sold within that time, they will rot.

Rolpa Exports 218,000 MT of Agricultural Produce in FY 2024/25

In the last fiscal year 2024/25, approximately 218,000 metric tons of agricultural produce were exported from Rolpa. During this period, agricultural goods worth Rs 30.03 million produced in the district were exported to other districts, while 86,000 metric tons were consumed locally. The Agricultural Knowledge Center in Rolpa reported that nearly Rs 8.5 billion entered the district economy through agricultural exports last year. The district primarily exports green vegetables, followed by potatoes, fruits, millet, legumes, and other crops.

674 Industries and Businesses Close in Rupandehi

In Rupandehi, 674 industries and businesses have closed.
During fiscal year 2024/25, 426 industrial and 248 commercial firms were shut down. Compared to the previous fiscal year, 272 more businesses closed last year. In fiscal year 2023/24, 402 businesses had their operations terminated, including 354 industries and 54 commercial firms. The number of closed commercial firms has increased compared to the previous year.

Bagmati Province to Renew 1,800 Community Forest Plans

Community forests will be renewed to boost revenue collection and remove legal restrictions on the regular use of forest products by consumers. The Ministry of Forests and Environment of Bagmati Province plans to renew the operational plans of community forest user groups. In the current fiscal year 2025/26, the ministry intends to renew plans for 1,800 community forests within the province. Out of 4,500 community forests in the province, the operational plans of 1,800 have already expired.

‘Saljhundi–Sandhikharka–Dhorpatan’ Road Progress Slow Due to Low Budget
The strategically important ‘Saljhundi–Sandhikharka–Dhorpatan’ road, connecting five districts in two provinces and covering 10 municipalities across the Terai and hills, has made slow progress due to insufficient budget. Although only two years remain to complete the project as per the target, the low allocation is slowing work to a snail’s pace. This project, launched in fiscal year 2009/10, plans to blacktop a total of 197.2 kilometers of road. Work is currently being carried out through eight separate contracts along this road section.

Rights Issue of Shiva Shree Hydropower Opens

From today, the rights issue of Shiv Shree Hydropower Company has opened. The company will issue shares at a ratio of one-to-one. Investors who held shares until July 31 will be eligible to apply.
The rights issue will remain open until September 24. Currently, the company’s paid-up capital is Rs 1.47 billion, which will rise to Rs 2.95 billion after the issue.

World-Class ‘XO Club’ Opens in Thamel

A world-class nightclub called ‘XO Club’ has opened in Thamel, Kathmandu. Built with an investment of around Rs 300 million, the company claims it marks a new chapter in Nepal’s nightlife industry. Even before the official inauguration, the club showcased a world-class experience in Kathmandu by organizing an under-construction party in collaboration with “Afterhours.” For the first time in Nepal, the club has installed world-renowned Adamson speakers, tuned personally by Carlos Salaberry from Canada.

Gold and Silver Prices Stable in Nepali Market on Thursday
On Thursday, the prices of gold and silver remained stable in the Nepali market. According to the Federation of Nepal Gold and Silver Dealers Association, trading on Thursday occurred at the same rates as Wednesday. Accordingly, on Thursday, minted gold was traded at Rs 207,900 per tola, and silver at Rs 2,480 per tola, which are the highest prices so far.