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.

Floods and Landslides Cut Off 12 Major Highways Across Nepal:
Floods and landslides triggered by the ongoing monsoon have brought 12 key traffic routes across Nepal to a standstill, the Department of Roads said. While 160 roadways remain open with one-way traffic, several strategic highways—including the Karnali Highway, Koshi Highway, and Tamor Corridor—are completely blocked. The diversion over the Barun River on the Koshi Highway has been swept away, while multiple sections of the Bheri Corridor, Shahid Marga, and Jumla Road remain inaccessible. The Araniko Highway also remains disrupted by ongoing construction. Ministry of Physical Infrastructure spokesperson Bhimarjun Adhikari said repair and clearance work is underway, but warned that heavy rains continue to complicate restoration efforts.

NEPSE Sheds 61 Points, Investors Lose Rs 101 Billion:
The Nepal Stock Exchange (NEPSE) plunged by 61.23 points last week, wiping out Rs 101 billion in market capitalization as investor confidence remained low. The benchmark index opened at 2,781 and closed at 2,719.67, with four of the five trading days ending in losses. All 13 sectoral groups fell, led by hydropower (-3.28%) and finance (-3.15%). Turnover dropped 21% to Rs 25.47 billion, though Nepal Reinsurance Company Limited topped trading with Rs 1.57 billion. While Him Star Urja surged 41%, People’s Power fell nearly 18%, underscoring the market’s sharp volatility.

Nepal, India to Jointly Lay Foundation of Dodhara-Chandani Dry Port:
Home Minister Ramesh Lekhak announced that the foundation stone for Nepal’s largest dry port in Dodhara-Chandani will be laid during the Prime Minister’s upcoming visit to India. Both prime ministers are scheduled to inaugurate the project jointly. Speaking at a Nepali Congress training event, Lekhak said embankments have already secured much of the flood-prone Mahakali and Jogbudha riverbanks, with more protections planned. He stressed that the dry port will be a milestone for trade infrastructure while reaffirming his party’s role in constitution-making and its continued importance in strengthening Nepal’s democratic system.

Fourteen Candidates Apply for Nepal Insurance Authority Chair After Ojha’s Dismissal:
The government has received 14 applications for the chairmanship of the Nepal Insurance Authority (NIA), following the dismissal of former chief Sharad Ojha over fraudulent documents. Aspirants include Ghanashyam Budhathoki, Vikrant Pandey, Paras Kafle, Bishnu Babu Mishra, Buddha Kaji Shrestha, Damodar Basaula, Chintamani Shiwakoti, Gyanendra Adhikari, and Dev Kumar Dhakal, alongside Prof. Deepak Bahadur Bhandari, Rajendra Pandit, Yagya Prasad Neupane, Ramesh Kumar Bhattarai, and Maheshwor Neupane. The Ministry of Finance set a seven-day deadline, with a recommendation committee led by NPC Vice-Chair Prof. Shivraj Adhikari, Finance Secretary Ghanshyam Upadhyay, and expert Khomraj Kharel tasked with shortlisting.

Nepal Rastra Bank Proposes Framework to Identify Systemically Important Payment Systems:
Nepal Rastra Bank (NRB) has issued a framework to identify systemically important payment systems (SIPS) and strengthen regulation over their operators. Under five criteria—handling large, time-sensitive transactions; criticality to financial market infrastructure; highest transaction value; significant market share; and deep interconnections—NRB may designate key systems such as Nepal Clearing House (Connect IPS, Corporate Pay), eSewa, PhonePay, and Khalti Wallet. The move aims to manage operational and systemic risks, ensure market stability, and promote financial inclusion and innovation. Identified SIPS will face stricter oversight to safeguard efficiency, resilience, and continuity.

Several Banks Announce Dividends Ahead of Dashain:
Ahead of Dashain, at least six banks in Nepal have announced dividend proposals for the fiscal year 2081/82. Everest Bank has declared a total 20% dividend—6% bonus shares and 14% cash—pending approval from Nepal Rastra Bank and the annual general meeting (AGM). Machhapuchhre Bank will propose 4% bonus shares and 4% cash at its AGM on October 10. Nepal Infrastructure Bank (NIFRA) has also proposed 6.3158% cash dividends. Other institutions, including Sanima, Citizens, Kamana Sewa Bikas, and Manjushree Finance, are completing preliminary approvals and audits before final AGM approvals and dividend distribution to shareholders.

Madhya Bhotekoshi Hydropower Set for Commercial Operation After 14-Year Delay:
The 102-MW Madhya Bhotekoshi Hydropower Project, Sindhupalchowk’s largest power plant, will begin commercial electricity production by mid-September after trial generation started on September 1. Built by Chilime Hydropower Company, a subsidiary of the Nepal Electricity Authority, the project is expected to generate 542 million units annually, earning Rs. 2.75 billion. Construction delays spanning 14 years—caused by political interference, local disputes, natural disasters, COVID-19, and border disruptions—ballooned costs from Rs. 12.33 billion to Rs. 22 billion, with daily loan interest reaching Rs. 2.5 million. Electricity is currently routed via a 40-km line to Khimti substation until Barhabise substation is completed.

Mustang Enforces Mandatory Health Checks for Sheep and Chyangra Ahead of Dashain:
Authorities in Mustang have made veterinary health checks mandatory for all sheep and mountain goats (chyangra) before they can leave the district for Dashain markets. The Veterinary Hospital and Animal Expert Centre in Jomsom will issue health cards after examinations, valid for 72 hours. Unchecked animals will be fined and sent back for testing. Healthy sheep will receive green horn stickers, while unhealthy ones get red marks and are kept under treatment. Around 15,000 animals, including imports from Dolpa and Tibet, are expected to be supplied. Demand remains high, with chyangra prices reaching up to Rs 35,000 during the festival.

Bheri River Water Lifting Project Pipeline Expansion Progressing Rapidly in Birendranagar:
The Bheri River Water Lifting Project, part of the World Bank-funded Water Supply Sectoral Governance and Infrastructure Support Project, is advancing swiftly in Birendranagar Valley. Of the planned 35 km pipeline, seven kilometres have been completed, with work ongoing in multiple wards. Three water treatment centres with a combined capacity of 9 million litres will be constructed at Amrit Danda. Tree-cutting approvals and site preparations are underway for project-affected areas. Despite only 12% overall progress so far, Mayor Mohanmaya Dhakal confirmed that pipeline installation and water tank construction are accelerating. The project, costing USD 100 million, aims to resolve Birendranagar’s drinking water crisis within the fiscal year.

BP Highway to Be Upgraded to Two Lanes, Tunnel Planned to Ease Eastern Traffic:
The flood-damaged BP Highway is set for reconstruction and expansion from an intermediate lane to a standard two-lane road, improving traffic flow for passenger and freight vehicles. The Road Division Bhaktapur has awarded contracts to Khani/Kamaljit/Awan JV and Lama/Nawakantipur JV to rebuild 19.5 km from Dalabeshi to Bhakundebesi, widening the carriageway from 5.5 to 9 metres. The government has allocated Rs 8.5 billion for the project. Plans also include a proposed 8.5-km tunnel between Khurkot and Sindhuli Chiabasi to shorten the route by 22 km. The upgraded highway will enhance connectivity from eastern hills and Tarai to Kathmandu.

Major Sections of Rani-Dharan Road Handed Over, Repairs Urgently Needed Amid Heavy Vehicle Damage:
Out of the 42-km Rani-Dharan stretch of the Koshi Highway, 32.8 km have been handed over to the Road Division Office, Biratnagar, from the Six-Lane Road Expansion Project Office. While 95% of physical work is complete, two sections—1.8 km in Duhabi and 5 km through Tarhara forest—remain under construction. Heavy trucks, often exceeding the 10-tonne axle limit, have severely damaged the Rani-Biratnagar (Dhat) segment, creating cracks, ruts, and depressions along the Sunsari-Morang Industrial Corridor. Officials have requested repair budgets from the Department of Roads, with plans underway to restore the western section of the highway to handle industrial and commercial traffic safely.

Tharu Cultural Museum in Dang Emerges as Major Tourist Attraction:
The Tharu Cultural Museum in Chakhoura, Dangisharan-3, has become a popular destination showcasing the art, culture, and traditions of Nepal’s Tharu community. Formally operational since 2018, the museum draws about 300 visitors daily, with larger crowds during holidays and festivals. Built over five bighas at a cost of Rs. 200 million, it features traditional Tharu houses, community structures, fishing tools, hunting weapons, agricultural implements, ornaments, and furniture. Statues, sculptures, and artistic displays recreate dances, customs, and lifestyles from Tharu groups across Nepal. With over 500 sculptures, the museum offers a comprehensive representation of Tharu heritage, making it a cultural tourism hotspot.

Social Media Ban Hits Nepal’s Digital Economy, Thousands of Jobs at Risk:
Nepal’s ban on Facebook, Instagram, and YouTube has triggered fears of severe economic fallout, with experts warning of widespread job and business losses. IT expert Dr. Rajib Subba said thousands of small enterprises dependent on these platforms have been disrupted, while tourism promotion, migrant family connections, and emergency communication are also affected. E-commerce, advertising, and Nepal’s growing creator economy face collapse, with content creators and marketers losing income sources. Digital media outlets may struggle to attract audiences. Telecom firms, heavily reliant on social media-driven data use, report major revenue losses.

61 Local Governments Yet to Present Budgets for FY 2025/26:
Sixty-one local governments have failed to present their budgets for fiscal year 2025/26, despite the legal deadline of Asar 10 (June 24). The fiscal year began on July 17, and so far, 692 out of 753 local units have unveiled budgets, according to the Ministry of Federal Affairs and General Administration. Political disputes and poor coordination are blamed for the delay. Of the defaulters, 40 are in Madhes Province, seven in Lumbini, five each in Koshi and Bagmati, three in Karnali, and one in Sudurpaschim. Notably, Itahari and Dharan sub-metropolitan cities are among those yet to pass budgets.

Indian GST Cuts Spark Alarm Among Nepali Industries, Call for Flexible VAT:
India’s sweeping reduction of Goods and Services Tax (GST) rates has alarmed Nepali industrialists, who fear domestic markets could be flooded with cheaper Indian goods. India replaced its four-tier GST structure with two slabs—5% and 18%—effective September 22, slashing taxes on dairy, cement, medicines, consumer goods, vehicles, and electronics. Nepali business leaders warn this will undermine local producers, especially in dairy, sugar, and daily consumables, where price gaps could grow sharply. Industry groups urge Nepal to reform its rigid 13% VAT system to remain competitive. While some exports like tea and cardamom remain unaffected, border trade imbalances may worsen.

World Bank VP Johannes Zutt Wraps Up Nepal Visit, Pledges $2.7 Billion Support:
World Bank Vice President for South Asia Johannes Zutt concluded a five-day visit to Nepal, his first since assuming the role in July 2025. Meeting senior government officials and Nepal Rastra Bank leadership, Zutt praised progress in peace, services, energy, and recovery since 2015. He highlighted Nepal’s growth in agribusiness, tourism, and IT, while stressing the need for reforms to expand achievements. The World Bank’s new Country Partnership Framework, aligned with Nepal’s 16th Plan, will provide $2.7 billion between 2025–2031, focusing on job creation and disaster resilience. With 500,000 youths entering the workforce annually, Zutt emphasized urgent job-focused reforms.

Govt Makes Health Insurance Mandatory for Indigent Citizens to Access Chronic Illness Aid:
The government has amended the Indigent Citizens’ Medication Programme Operation Directive, 2080 BS, making enrolment in the national Health Insurance Scheme compulsory for indigent citizens with chronic illnesses to receive financial support. Effective mid-October 2025, the Ministry of Health and Population has merged the Social Health Security Programme into a one-door system. Patients with heart disease, kidney disease, cancer, Parkinson’s, Alzheimer’s, spinal or head injuries, and sickle cell anaemia must register in the scheme to access aid. The Health Insurance Board will be the sole grant-disbursing body. Beneficiaries are urged to enrol by mid-October to avoid service disruptions.