Nepal News Evening Economic Brief – October 16, 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:

NRB To Invest Nearly Rs 25 Billion into Term Deposits

The Nepal Rastra Bank (NRB) has invited commercial banks, development banks, and finance companies categorized as ‘A’, ‘B’, and ‘C’ class to submit interest rate proposals to receive Rs 24.83 billion in term deposits. The 366-day investment period spans from November 2, 2026 to November 2, 2027. NRB has allocated Rs 19.86 billion to ‘A’ class commercial banks, Rs 3.72 billion to ‘B’ class development banks, and Rs 1.24 billion to ‘C’ class national-level finance companies. Bidding financial institutions must submit their rate proposals by October 27, 2026. Eligible institutions must meet prescribed capital funds, operate for at least two years, maintain a non-performing loan ratio under 8 percent, net non-performing loans below 3 percent, and fulfill net liquid asset requirements.

 NEPSE Index Gains 8.23 Points, Daily Turnover Rises to Rs 4.88 Billion

The Nepal Stock Exchange (NEPSE) index gained 8.23 points to close at 2,634.17 points on Friday, October 16, as share prices of 174 companies advanced and total trading turnover increased to Rs 4.88 billion from Rs 4.70 billion on Thursday, October 15, 2026. A total of 91 companies registered declines, while 12 remained unchanged. Highest trading volumes were led by Ghalemdi Hydropower, Nepal Investment Mega Bank, and Green Ventures. The banking sector recorded the highest sectoral gain at 0.72 percent, followed by microfinance at 0.53 percent and hydropower at 0.52 percent. Chirakhwa Hydropower topped individual gainers, surging 14.82 percent, while Himalayan Everest Insurance led losses, falling 4.98 percent.

SEBON and NEPSE Discuss Capital Market Restructuring and Secondary Trading

Senior officials from the Securities Board of Nepal (SEBON) and the Nepal Stock Exchange (NEPSE) convened a high-level consultative meeting to evaluate implementation strategies for recommendations proposed by the NEPSE Restructuring Suggestion Committee, 2025. Focusing on institutional ownership, corporate governance, technological infrastructure, and secondary market service diversification, board chairman Gopal Prasad Bhatta emphasized that modernizing capital, workforce capabilities, and digital architecture is vital for a robust exchange. Ministry of Finance Joint Secretary and NEPSE Board Chairman Narayan Prasad Risal affirmed institutional commitment to implementing immediate structural enhancements, while board deputy executive director Ambika Ojha Gupta presented regulatory frameworks designed to expand investment instruments and enhance transparency across national securities markets.

NRB Temporarily Expands Digital Wallet Transaction Limits for Festive Season

The Nepal Rastra Bank (NRB) temporarily expanded daily transaction frequency limits for digital payment service providers such as eSewa and Khalti to facilitate seamless financial transfers and online shopping during the festive holiday period. Pursuant to a circular issued by the central bank’s Payment Systems Department, users are permitted up to 50 daily deposit transactions, replacing the previous operational limit of 10 transactions per day. This temporary regulatory accommodation applies during two designated festive windows: from October 17 to October 25 for Dashain, and from November 7 to November 15 for Tihar and Chhath. Payment institutions must submit comprehensive transaction volume and monetary turnover reports to the central bank following the conclusion of each authorized period.

Vigilance Centre Deploys Teams to Monitor Festive-Season Markets

The National Vigilance Centre has deployed four monitoring teams to curb black marketing, price hikes and unfair trade practices during the festive season. The teams were deployed on October 15. Separately, from October 7 to 15, the center monitored employee conduct at 43 offices in the Kathmandu Valley and Madhesh Province. The center issued directives to concerned agencies to take action under existing rules against 714 employees found to have violated workplace requirements. Of them, 689 failed to maintain punctuality, while 25 did not wear the prescribed uniform. The monitoring comes during the festive period, when demand for goods and services typically increases. The briefing did not provide details of specific market violations identified by the four teams or report any penalties imposed on businesses.

Prime Minister’s Disaster Relief Fund receives Rs 17.943 billion

The Prime Minister’s Disaster Relief Fund has received a total of Rs 17.943 billion, according to the Office of the Prime Minister and Council of Ministers. The office said Rs 1 billion was transferred from the fund to the Disaster Management Fund under the National Disaster Risk Reduction and Management Authority, following a decision by the Fund Operation Committee on September 1. The amount reported as deposited in the Prime Minister’s fund is Rs 17.943 billion. However, the briefing did not clarify whether this figure represents the balance remaining after the transfer or the cumulative amount deposited before the disbursement. The fund supports disaster-related relief efforts, while the transferred amount was allocated to the authority’s Disaster Management Fund.

Cabinet Sets Wheat Support Price at Rs 4,107, Accepts ¥298 Million and €20 Million in Grants

The Council of Ministers has set the minimum support price of wheat at Rs 4,107 per quintal for fiscal year 2026/27 and accepted emergency grant assistance worth JPY 298 million from Japan and EUR 20 million from Germany. The Japanese assistance will be provided in the form of commodities and services. The Cabinet also decided to provide temporary housing and livelihood assistance to families whose homes were damaged by floods and landslides in Gorkha, Dhading and Baglung districts. Eligible families with up to four members will receive Rs 15,000 per month, with an additional Rs 2,000 per month for each additional member, for a maximum of six months. The Cabinet also approved the principles for drafting the Budhi Gandaki Development Authority Bill and the National Employment Bill, approved several regulatory amendments, and endorsed bills to amend laws concerning animal slaughterhouses and meat inspection, and the rights of persons with disabilities. It further decided to bring three provisions of the Criminal Offence (Sentencing and Execution) Act, 2017, into effect from November 1, 2026.

Ministry Grants Approval for Private Sector Participation in Cross-Border Electricity Trading

The Energy, Water Resources and Irrigation Minister Biraj Bhakta Shrestha decided on Friday, October 16, to issue a Letter of Intent (LoI) granting private companies in-principle approval to undertake preparatory work for cross-border power trade. The decision marks a significant shift from the private sector’s previous role, which was limited primarily to generating electricity, by permitting eligible companies to assess the feasibility of electricity trading and explore potential buyers and sellers across domestic and foreign markets. Under the arrangement, LoI recipients can conduct technical, financial, and commercial feasibility studies, identify potential trading partners, hold discussions, and draft power purchase and sale agreements in accordance with prevailing laws. However, the LoI does not authorize immediate power transactions; companies must complete licensing processes, secure consent, finalize power purchase agreements, and arrange transmission access before trading can commence.

Govt. Registers Building Second Amendment Bill 2026 to Ensure Safe Housing Rights

The Prime Minister Balendra Shah announced that the Ministry of Infrastructure Development registered the Building (Second Amendment) Bill, 2026, in the House of Representatives on October 2 aiming to guarantee constitutional housing rights. The bill follows severe flood damage on August 26  and October 11, which impacted 7,570 private residences in Rasuwa, Nuwakot, Dhading, Gorkha, and Chitwan with Rs 63.884 billion in damages, alongside 72 damaged houses in Gorkha. The bill proposes model house designs utilizing indigenous skills and safety evaluations after 50 and 65 years. For impoverished families, federal grants of Rs 50,000 and provincial grants of Rs 25,000 are planned, alongside concessional loans for middle-income homes valued between Rs 2 million and Rs 7.5 million. Advances range from Rs 500,000 to Rs 2.5 million, with monthly installments spanning Rs 11,000 to Rs 35,000 over 15 years.