Nepal News Evening Economic Brief – October 12, 2026

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:

Dashain Festival Market Experiences Price Hikes Across Essential Goods

With the arrival of Dashain, market activity and consumer footfall have increased across the country, accompanied by notable price hikes in food grains, clothing, meat, and cooking gas. According to the Nepal Rastra Bank, annual consumer inflation rose to 5.96 percent in the first month of fiscal year 2026/27, with food and beverage prices increasing by 6.77 percent and transportation rising by 13.17 percent. Consumer inflation peaked in Madhesh Province at 6.94 percent. Rising costs are driven by transport disruptions following the August 26 Bhote Koshi-Trishuli floods, route closures at Rasuwa and Tatopani, currency fluctuations, and international oil price adjustments. Furthermore, all border points between India and China are closed.

Department Directs Mandatory Festival Allowance For Employees Under Labor Act 2017

The Department of Labor and Occupational Safety has directed private schools, businesses, and industries to distribute mandatory festival allowances to workers in compliance with Section 37 of the Labour Act, 2017. Under the statutory provision, every worker is entitled to an annual festival allowance equivalent to 1 month of their basic salary. On October 9, the department sent official directives to the Federation of Nepalese Chambers of Commerce and Industry, Confederation of Nepalese Industries, and Nepal Chamber of Commerce. Similar communications were dispatched to the Private and Boarding Schools’ Organization Nepal and National Private and Boarding Schools Association Nepal regarding school staff.

NEPSE Rises 4 Points, Turnover Falls to Rs 4.46 Billion

The Nepal Stock Exchange (NEPSE) index rose 4.00 points to close at 2,595.81 points on Monday, while daily turnover declined to Rs 4.46 billion from Rs 4.83 billion on Friday. Share prices of 105 companies increased, 165 companies declined and seven companies remained unchanged during the day’s trading. Among sectoral indices, the banking group rose 1.01 percent and the trade group gained 1.02 percent. The development bank index increased 0.53 percent, the finance index rose 0.21 percent and the life insurance index edged up 0.05 percent. Among individual stocks, Dhaulagiri Laghubitta recorded the highest gain, rising 15 percent. Snow Rivers gained 13.92 percent, Bungal Hydropower rose 4.75 percent and Super Mai Hydropower increased 3.98 percent. However, the hotels and tourism index declined 0.87 percent, followed by others, down 0.42 percent; hydropower, down 0.46 percent; investment, down 0.28 percent; manufacturing and processing, down 0.19 percent; non-life insurance, down 0.12 percent; and microfinance, down 0.01 percent.

Ministry Of Finance Publishes Simplified Citizen Budget Booklet To Enhance Financial Transparency

The Ministry of Finance published a simplified “Citizen Budget” booklet titled “Our Taxes, Our Budget, Our Future” across its official digital portals to enhance public comprehension of government expenditures and fiscal allocations. Designed to translate the national budget initially released on May 29 into accessible language, the explanatory document outlines revenue sources, taxation frameworks, public debt structures, national development priorities, and the six distinct stages of the budgetary formulation process. Finance Minister Swarnim Wagle emphasized that the citizen budget reinforces institutional accountability by providing ordinary citizens with clear insights into public resource allocations, governance objectives, and socioeconomic development targets.

SEBON Comprehensive Study Report On Private Equity And Venture Capital Ecosystem

The Securities Board of Nepal (SEBON) published an exhaustive study report evaluating the regulatory framework and operational ecosystem of private equity and venture capital in Nepal to foster sustainable capital market expansion and entrepreneurial innovation. Released in alignment with the annual fiscal program, the capital market reinforcement action plan, and public stakeholder consultations, the diagnostic report emphasizes transitioning private equity and venture capital funds beyond specialized investment vehicles into vital economic catalysts capable of attracting foreign capital, generating employment, and expanding public capital markets. Grounded in international best practices, the regulatory roadmap recommends adopting risk-based supervision, enhanced investor protection, corporate transparency, qualified investor classifications, and digital monitoring systems to catalyze productive capital mobilization nationwide.

LP Gas Industry Association Expands Cylinder Exchange to 11 Locations in Kathmandu

The Nepal LP Gas Industry Association expanded its temporary cooking gas cylinder exchange initiative across 11 designated distribution hubs within the Kathmandu Valley starting Monday, October 12, to alleviate festive supply shortages. Executed in coordination with the Nepal Oil Corporation and the Gas Dealers Federation, the administrative measure enables consumers to exchange empty cylinders of any participating brand for refilled alternatives without incurring supplementary service fees. Operating daily from 11:00 AM to 4:30 PM through November 16, the expanded distribution network incorporates newly added exchange points at Chapali Budhanilkantha, Harisiddhi, Kalanki, Khasi Bazar, and Santungal alongside existing locations, following strong public engagement that recorded 3,075 cylinder transactions during its opening day.

Nepal Among Countries Reporting Decline in Multidimensional Poverty, UNDP Report Says

Nepal recorded a significant decline in multidimensional poverty, alongside Egypt and Tajikistan, even as the number of people living in acute poverty worldwide rose to 1.2 billion, according to a 2026 report by the United Nations Development Program (UNDP) and the University of Oxford. The report, released Monday, said global multidimensional poverty increased by 51.5 million people from the previous year, marking the first rise in the index since its launch in 2010. More than half of those living in acute poverty are children. The index measures deprivation in housing, sanitation, electricity, cooking fuel, nutrition and education, not income alone. The report said population growth was the main driver of the global increase, while 33 countries halved their multidimensional poverty rates over the past 15 years. The report also highlighted rapid progress in poverty reduction in China and India, Nepal’s neighboring countries, while noting that most of the world’s poor continue to live in Sub-Saharan Africa and South Asia.

Parliamentary Committee Questions Ambassador-Designate On Trade And BRI Modality With China

During a parliamentary hearing on Monday, October 12, lawmakers questioned ambassador-designate to China Kalyan Raj Sharma regarding trade, infrastructure, and bilateral cooperation. Committee members Rajiv Khatri, Madhukumar Chaulagain, Barshaman Pun, Prem Dangal, and Padma Kumari Aryal raised concerns over reducing the bilateral trade deficit, regularizing flights at Pokhara and Bhairahawa airports, attracting Chinese investment, and clarifying investment modalities under the Belt and Road Initiative (BRI). Further discussions focused on border crossings including Rasuwa and Tatopani, export promotion, wellness tourism, and welfare support for Nepali women in China. Kalyan Raj Sharma pledged to prioritize national interests. Furthermore, all border points between India and China are closed.

Sudurpaschim Allocates Rs 32.5 Million For Cable Car Feasibility Study In Badimalika

The Sudurpaschim Province government allocated Rs 32.5 million in its budget for the current fiscal year 2026/27 to conduct a feasibility study for operating a cable car system in the religious and tourist destination of Badimalika in Bajura. Presenting the fiscal document before the provincial assembly, Provincial Economic Affairs Minister Chakrabahadur Malla announced that management feasibility studies and public-private partnership frameworks under a build-own-operate model will advance alongside the extension of electrical transmission lines to the region. Furthermore, the provincial budget allocated Rs 61 million for infrastructural construction, including a pagoda-style temple reflecting regional identity and a golden bridge at Triveni Dham in the Khaptad National Park spanning Bajura, Bajhang, Achham, and Doti districts, alongside an additional Rs 60 million to upgrade the Kolti Basic Hospital in Budhinanda Municipality-2 into a provincial medical hub serving neighboring districts.