Nepal News Evening Economic Brief – October 29, 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 Absorbs Rs 150 Billion in Excess Liquidity from Financial System

The Nepal Rastra Bank (NRB) initiated liquidity absorption totaling Rs 150 billion from the financial system for an eight-day period to manage mounting excess liquidity driven by seasonal remittance inflows and festive economic activity. Official data indicates that surplus funds parked within the central bank reached Rs 1.386 billion, exacerbated by continuous deposit expansions and weak credit demand alongside foreign financial assistance associated with the Rasuwa flood relief. While short-term interbank interest rates remain depressed, the central bank maintains its policy floor by deploying deposit collection tools, treasury bills, and permanent deposit facilities at the standing deposit facility rate of 2.75 percent, keeping policy rates aligned with the 5.75 percent bank rate.

NEPSE Rises 31.54 Points with Rs 8.57 Billion Turnover Today

The Nepal Stock Exchange (NEPSE) index rose 31.54 points, or 1.18 percent, to close at 2,695.60 points on Thursday, extending Wednesday’s gains. Share prices of 181 companies increased, while those of 91 declined and six remained unchanged. All 13 trading subgroups posted gains. A total of 23.26 million shares were traded in 69,619 transactions, generating a turnover of Rs 8.57 billion, up from Rs 7.46 billion on Wednesday. Beni Hydropower recorded the biggest gain, with its share price rising 15 percent, while NRN Infrastructure and Development suffered the largest decline, falling 3.65 percent. Ghalemdi Hydropower led turnover, with shares worth Rs 356.17 million traded at Rs 335 per share.

SEBON Classifies 117 Companies Seeking Rs 71.422 Billion in IPO Approvals Across 6 Stages

The Securities Board of Nepal (SEBON) classified 117 applicant companies seeking regulatory approval to issue 510,981,946 initial public offering (IPO) shares worth Rs 71.422 billion into six review stages. Official records indicate that 76 companies remain in the initial stage due to incomplete documentation, six companies are in the second stage, four in the third stage, 19 in the fourth stage, 10 in the fifth stage, and two in the final review stage. The two companies in the final approval phase comprise Ashutosh Energy, seeking to issue 1,200,000 shares valued at Rs 120 million managed by NMB Capital, and Kantipur Pharmaceuticals Lab, proposing 1,700,000 shares worth Rs 170 million managed by Muktinath Capital.

Parliamentary Panel Seeks Spending Details as Disaster Relief Funds Reach Rs 18.28 Billion

A National Assembly parliamentary special committee monitoring the Bhote Koshi and Kali Gandaki corridors called for full public disclosure of relief funds collected and spent for flood recovery on Thursday. Officials revealed that the Prime Minister’s Natural Disaster Relief Fund and Prime Minister’s Relief Fund hold a combined Rs 18.28 billion. Finance Secretary Ghanshyam Upadhyaya noted Rs 242 million was distributed to affected local governments via the National Disaster Risk Reduction and Management Authority (NDRRMA), with Rs 2.54 billion committed for security agencies. The National Planning Commission (NPC) estimated total disaster losses at Rs 408.29 billion and overall reconstruction costs at Rs 723.31 billion, while the Disaster Council approved Rs 225.77 billion in initial projects.

Foreign Minister Cites $4.8 Billion Disaster Damage and Welcomes $21.6 Million Allocation

Foreign Minister Shisir Khanal urged the international community to strengthen mountain conservation support and ensure accessible climate finance while outlining national priorities ahead of the 31st UN Climate Change Conference (COP31) in Antalya, Türkiye. Addressing the National Climate Summit 2026 in Kathmandu today, Thursday, Khanal cited the recent Bhote Koshi disaster, which caused USD 4.8 billion in damage, to highlight the vulnerability of Himalayan ecosystems. He welcomed a provisional allocation of USD 21.6 million to the nation from the Fund for Responding to Loss and Damage, calling for grant-based funding. Ahead of COP31, Khanal identified four priorities: establishing a dedicated mountain agenda, operationalizing loss and damage support, securing climate finance, and advancing climate justice under the Sagarmatha to the Sea vision.

Nation Secures $65 Million Climate Funding; Minister Chaudhary and Speaker Aryal Plan COP31 Delegation

Minister of Agriculture, Forests and Environment Gita Chaudhary and House of Representatives Speaker DP Aryal met to discuss preparations for the UN Climate Change Conference (COP31) in Antalya, Türkiye, scheduled for November 9 to November 20. The discussion focused on securing climate finance, noting the nation will receive USD 20 million from the Fund for Responding to Loss and Damage for Bhote Koshi flood impacts, alongside USD 45 million approved across three projects under the Adaptation Fund. Officials established strict parliamentary participation criteria, requiring lawmakers to provide funding documentation to obtain official accreditation. The nation will host a national climate summit ahead of the conference to launch the Living Everest mountain strategy and release its official position paper before leading 44 side events at its conference pavilion.

FDI Commitments Reach Rs 16 Billion Across 422 Projects in First Quarter

Foreign direct investment (FDI) commitments approved in Nepal reached Rs 16.231 billion across 422 new industrial and project registrations during the first three months of fiscal year 2026/27 (July 17 to October 17, 2026), according to the Department of Industry. Approved projects comprised 410 industries registered via the automated route amounting to Rs 14.586 billion and 12 industries through approval routes totaling Rs 1.645 billion. While cumulative commitments fell sharply compared to Rs 35 billion recorded during the corresponding period of the previous fiscal year, the current quarter’s registrations, led by 252 information technology projects and strong investment in tourism, are projected to generate employment for 5,129 individuals.