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:
NRB’s Digital Finance Innovation Hub Engages 50 Fintech Startups to Advance Regulatory Clarity
Nepal Rastra Bank’s (NRB) Digital Finance Innovation Hub incorporated 50 fintech enterprises, technology startups, and individual innovators into its collaborative regulatory sandbox, registering the highest concentration of proposals within digital payments and online lending systems. According to the central bank’s annual impact assessment report, participating entities comprise 30 unregistered fintech startups, eight payment system operators, four licensed banks and financial institutions, three payment service providers, and three independent innovators, with 12 projects focused on payment infrastructures, 11 on digital credit, seven on credit scoring, five on embedded finance, and four on open banking. The hub successfully evaluated 20 preliminary proposals, issued formal regulatory guidance to three enterprises, and resolved statutory ambiguities to accelerate commercial deployment.
NEPSE Index Gains 21.32 Points with Rs 4.13 Billion
The Nepal Stock Exchange (NEPSE) index rose by 21.32 points to close at 2621.26 points on Wednesday, October 14. Total daily market turnover reached Rs 4.13 billion, with 11.6 million shares traded across 39,183 transactions involving 354 scrips. Overall buying activity remained strong, as 188 companies recorded price gains, 80 declined, and 9 remained unchanged. Siddhartha Bank debentures led the gainers with a 13.21 percent surge. Kumari Bank topped transaction volume with a turnover of Rs 264.6 million, followed by Ghalemdi Hydro Power at Rs 216 million. Sectoral indices for banking, development banks, and non-life insurance companies each expanded by over 1 percent, with all sectors closing in positive territory.
PM Disaster Rescue and Relief Fund has 17.75 Billion
The Prime Minister Natural Disaster Rescue Fund and Prime Minister Relief Fund have been receiving funds for the financial assistance of the people affected by the floods in the Bhote Koshi-Trishuli river system. According to the Office of the Prime Minister and Council of Ministers, a total of Rs 17.75 billion has been deposited at the Fund’s various bank accounts till today. The Fund’s nine accounts maintained at various commercial banks have Rs 13.23 billion and the accounts at Himalayan Bank and Laxmi Sunrise Banks have USD 29.747 million.
NRB Directs Banks to Appoint Focal Persons to Tackle Holiday Cyber Crime
Nepal Rastra Bank (NRB) has directed banks and financial institutions to appoint designated contact persons to respond to cyber fraud cases during the public holidays of Dashain, Tihar and Chhath. The arrangement aims to ensure that details of electronic financial fraud are shared promptly, suspicious accounts and transactions are identified quickly, and funds linked to suspected fraud can be frozen without delay. The central bank has instructed licensed Class A, B and C banks and financial institutions to submit the contact person’s name, designation and mobile number to Nepal Police Headquarters at [email protected]. They must also provide an email address that will be monitored around the clock or used for on-call responses. NRB said the measure was introduced because cyber fraud risks can persist during public holidays, when timely coordination between financial institutions and police is essential for identifying suspicious transactions and facilitating investigations.
Ministry of Finance Projects Revenue Deficits and Lower Economic Growth
The Ministry of Finance projected heightened fiscal pressure and constrained revenue collection for the current fiscal year 2026/27 following severe damage inflicted by the Bhote Koshi flash floods on August 26. Publishing its annual economic bulletin for fiscal year 2025/26, the ministry stated that relief and reconstruction expenditures will exceed one-third of the annual budget, alongside revenue losses stemming from tax exemptions and border closures at Rasuwagadhi and Tatopani. The floods damaged 431 megawatts of hydroelectric capacity, representing 10 percent of total installed power, and created reconstruction needs estimated at Rs 723 billion, or 11 percent of gross domestic product, lowering official growth projections to between 3.5 percent and 4 percent, compared to World Bank estimates of 3.7 percent and Asian Development Bank forecasts of 4.1 percent.
Govt. Prepares to Issue Letters of Intent to Private Companies for Electricity Trading
Energy, Water Resources and Irrigation Minister Biraj Bhakta Shrestha announced on Wednesday, October 14, that the government is finalizing policy arrangements to issue Letters of Intent to private companies for electricity trading. Reviewing ministry progress over the past six months, Shrestha stated that the Required Commercial Operation Date was extended for 27 hydropower projects totaling 540.47 megawatts. Nepal and India agreed to expand cross-border power import capacity from 1,000 megawatts to 1,400 megawatts and export capacity from 1,100 megawatts to 1,650 megawatts. Transmission infrastructure developments include completing the Bahrabise-Lapsiphedi 400-kilovolt line and advancing 12 additional lines. The ministry also expanded irrigation coverage, registered a renewable energy bill in the House of Representatives, and provided Rs 500,000 each to families of 6 missing Nepal Electricity Authority employees.
Govt. Launches Infrastructure Development Plan For 109 Community Schools
The government has initiated an infrastructure development plan targeting 109 community schools nationwide that have over 2,000 students and strong SEE results to sustain growing student enrollment. Minister of Education and Sports Sasmit Pokharel stated that Rs 6.54 billion was allocated in the current fiscal year for physical infrastructure expansion. In the first phase, Rs 5.34 billion was disbursed to 89 schools to accelerate the construction of modern 12-room, three-storey buildings costing approximately Rs 60 million each. The new structures will feature modern classrooms, laboratories, and libraries. Pokharel committed to reducing educational disparities across all public schools and called for national cooperation to enhance overall education quality.
National Council Recommends Rs 559 Billion Budget for Reconstruction Across Flood-Hit Areas
The National Disaster Risk Reduction and Management Council recommended allocating Rs 559.72 billion across 504 specific reconstruction projects to restore infrastructure destroyed by severe monsoonal floods along the Bhote Koshi, Kali Gandaki, and Budhi Gandaki river basins. Submitted to the Ministry of Finance for formal budgetary approval following the 21st council meeting, the comprehensive financial framework earmarks Rs 418 million for immediate communication restoration, including mobile BTS towers and satellite backup systems, alongside Rs 452.4 million for medium and long-term telecommunication projects. Furthermore, the proposals allocate Rs 218.2 million for immediate agricultural and forestry rehabilitation alongside Rs 993.7 million for long-term recovery, while water resource ministries requested Rs 606.8 million for immediate hydrological station rebuilding and Rs 193.95 billion for structural flood control and irrigation projects.
More Than 130,000 Passengers Book Advance Tickets for Dashain Festival
A total of 130,129 passengers have booked advance bus tickets to travel home for Bada Dashain, while 78,138 passengers left Kathmandu Valley in the past 24 hours as the annual festival exodus gathered pace. Deputy superintendent of police at the Kathmandu Valley Traffic Police Office said 78,138 passengers departed through various checkpoints between Tuesday morning and Wednesday morning. Since Ghatasthapana, the first day of Dashain, 187,774 passengers have left the valley by public transport. Of them, 52,827 departed on October 11 and 56,809 on October 12. Transport operators say damaged roads, including a section of the Prithvi Highway that caved in at Galaudi, Dhading, on October 9, have complicated vehicle management and caused travel disruptions. The Federation of Nepalese Transport Entrepreneurs has urged passengers to purchase tickets before travelling, pay the prescribed fares and check vehicle conditions before departure.
Dashain Travelers Face Acute Air Ticket Shortage and Soaring Fares Departure from Capital City
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