Nepal News Evening Economic Brief – October 06, 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 Expands Foreign Exchange Facilities for IT, Energy, and Aviation Sectors

The Nepal Rastra Bank (NRB) has introduced major amendments to its unified foreign exchange directives, expanding outward remittance thresholds and payment allowances for information technology enterprises, energy developers, tourism operators, and cross-border service industries. The regulatory adjustments are designed to streamline corporate foreign exchange procedures without requiring mandatory institutional approvals for standard commercial transactions. Under the revised framework, domestic commercial airlines seeking to dispatch aircraft engines or critical spare parts abroad for mandatory maintenance are authorized to remit advance payments up to USD 500,000, representing a fivefold increase from the previous USD 100,000 limit. The transactions require recommendation documentation from the Civil Aviation Authority of Nepal but remain exempt from mandatory foreign bank guarantee requirements.

NEPSE Index Rises 11.96 Points to 2,578.73

The Nepal Stock Exchange (NEPSE) index rose 11.96 points to close at 2,578.73 on Tuesday, extending gains in the securities market. The Sensitive Index, which tracks the performance of large-cap companies, increased 2 points to 461.86, while the Float Index rose 0.82 points to 177.71. The Sensitive Float Index gained 0.75 points to 155.84. A total of 8,955,230 shares changed hands in 3.138 billion rupees worth of transactions. Of the 13 subgroups, 11 posted gains and two declined. Share prices of 169 companies increased, while 95 declined and 15 remained unchanged. Among the gainers were Trishuli Jalavidhyut Company, Salpa Bikas Bank and Hathaway Investment Nepal. Sarbottam Steels, NIBL Growth Fund and Chirkhwa Hydropower were among the decliners.

Advanced Bus Ticket Booking for Dashain Festival to Starts Friday

Advance bus ticket bookings for passengers traveling home for the Dashain festival will officially open across the country starting on Friday, October 9. The decision was reached during a stakeholder meeting held at the Department of Transport Management. Director-General stated that coordinated arrangements are being implemented alongside traffic authorities and transport operators to ensure a secure and organized transit experience for citizens departing urban centers. Route permit restrictions across national highways will be temporarily lifted from October 11, 2026, through October 25, 2026, though heavy freight trailers will remain prohibited on the Narayangadh-Kathmandu corridor during peak festival periods.

World Bank Projections Show Nepal’s Economic Growth Slowing to 3.7% 

The World Bank projected that Nepal’s economic growth will slow to 3.7 percent this year due to devastating floods in Rasuwa on August 26, which caused extensive damage to hydropower, solar energy, transmission lines, and transport infrastructure. Released in a report titled “Rebuilding Differently for the Future,” the findings highlight significant disruptions across industrial and service sectors, though growth is expected to rebound to 5.2 percent in the 2027/28 fiscal year. World Bank Division Director for Maldives, Nepal, and Sri Lanka David Sislen emphasized seizing reconstruction opportunities through multi-hazard risk assessments, resilient infrastructure designs, and enhanced early warning systems. Furthermore, all border points between India and China are closed.

Finance Minister Meets World Bank Group President in Washington DC

Finance Minister Swarnim Wagle, currently visiting the USA leading a delegation at the invitation of the World Bank president, held a high-level bilateral meeting with World Bank Group President Ajay Banga in Washington DC, on Monday. The discussions focused extensively on the reconstruction of physical and economic infrastructures damaged by the catastrophic Bhotekoshi-Trishuli floods, the urgent need for macroeconomic reforms, and the mobilization of resources worth about one billion US dollars for insurance and social protection frameworks. Banga expressed deep grief over the loss of lives and damages caused by the disaster in Nepal, pledging significant financial assistance for the ongoing reconstruction drive. Furthermore, all border points between India and China are closed.

Ministry of Energy Forms High-Level Committee with Private Sector to Resolve Implementation Issues

The Ministry of Energy, Water Resources and Irrigation formed a high-level committee with private sector participation on Tuesday to address policy and legal complexities in energy sector projects. Coordinated by Ministry Joint Secretary Sunil Paudel, the committee includes officials from the Department of Electricity Development and the Nepal Electricity Authority alongside Independent Power Producers’ Association, Nepal representatives Narendra Ballabh Panta, Abhigya Malla, Anup Acharya, and engineer Shirich Pandey, with Senior Divisional Engineer Shalikram Bhandari serving as member secretary to recommend project facilitation measures. Furthermore, all border points between India and China are closed.

Country Implements Wheeling Charges to Expand Private Sector Participation in Power Transmission and Trade

The country has established its inaugural electricity transmission fee, known as a wheeling charge, marking a structural shift that extends private sector involvement beyond generation into power transmission and interstate trade. The Electricity Regulatory Commission formalized the open access framework by issuing the National Electricity Transmission Grid Transmission Fee Calculation Standards, 2026, establishing tariffs for the fiscal year 2026/2027. Under the newly defined regulatory framework, medium and long-term open access utilization incurs a transmission charge of approximately Rs 413,000 per megawatt per month, while short-term open access is set at Rs 0.57 per kilowatt-hour. This policy enables qualified power producers, licensed traders, and major industrial consumers to utilize the national transmission grid as a shared utility infrastructure upon paying the stipulated tariffs. Energy, Water Resources and Irrigation Minister Biraj Bhakt Shrestha emphasized that while the initial fee structure appears modest, it serves as a foundational step toward establishing a competitive, market-driven electricity economy.