Nepal News Evening Economic Brief – October 07, 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 Directs Banks to Dispense New Rs 100 Banknotes Via ATMs for Dashain

The Nepal Rastra Bank (NRB) has directed banks and financial institutions to make new Rs 100 banknotes available through ATMs during Dashain and other upcoming festivals, with some institutions already distributing the notes through newly configured machines. The NRB, through its Thapathali office, provincial offices and commercial banks, has been distributing clean and crisp banknotes since September 17. Some banks and financial institutions have also started making new Rs 100 notes available through ATMs. The central bank has gradually discouraged the practice of introducing new banknotes into circulation specifically for festivals over the past four to five years, treating currency exchange as a routine banking service rather than a festival-specific activity. The decision to avoid a separate public notice specifically for Dashain also followed the Bhote Koshi flood, which caused significant loss of life and property shortly before the festival season. Currency in circulation stood at Rs 794 billion as of September 16. The NRB estimates that the amount will increase by around 8 to 10 percent during Dashain.

NRB Withdraws Rs 30 Billion Through One-Month Deposit Collection Auction

Nepal Rastra Bank initiated a liquidity absorption auction totaling Rs 30 billion today to manage surplus liquidity within the banking sector. Commercial banks, development banks, and finance companies participated in the competitive multi-price auction utilizing interest rate proposals. Financial sector indicators reflect total deposits standing at approximately Rs 8.458 trillion against credit disbursements of Rs 6.61 trillion, leaving substantial lendable resources amid modest credit demand. The collected deposits will carry a maturity period of 28 days, with principal and interest settlements scheduled for November 4, 2026.

NEPSE Falls 6.38 Points With Rs 3.75 Billion Turnover

The Nepal Stock Exchange (NEPSE) index fell 6.38 points on Wednesday to close at 2,572.34 points, extending a decline in the broader share market despite an increase in daily trading turnover. The Sensitive Index, which tracks the performance of larger companies, declined 0.63 points. The Float Index fell 0.26 points, while the Sensitive Float Index decreased 0.19 points. Despite the decline in the benchmark index, market turnover increased. Shares worth Rs 3.748 billion changed hands on Wednesday, up from Rs 3.13 billion on Tuesday. Of the 13 sub-indices traded during the session, one gained while 12 declined, indicating broad-based selling pressure across most sectors. Ghalemdi Hydro recorded the biggest gain in share price, rising 6.25 percent during the session. The company also led the market in turnover, with shares worth Rs 322.1 million traded on Wednesday.

Securities Board of India and Nepal Delays Regulatory Amendments

The Securities Board of Nepal has delayed proposed regulatory amendments regarding corporate mergers and acquisitions involving unlisted private entities and registered public companies. Following a corporate initiative involving the acquisition of a private firm by a publicly listed pharmaceutical company, a specialized study committee formulated comprehensive review recommendations concerning compliance with prevailing corporate and securities legislation. Regulatory analysts noted that despite the submission of the evaluation report, formal implementation measures concerning revisions to the Securities Registration and Issue Regulation and related acquisition guidelines have experienced administrative delays, prompting discussions within financial market oversight circles regarding corporate governance standards.

Cabinet Approves Compensation for 153 Victims Recommended by NHRC

The Cabinet on Wednesday at 4PM approved compensation for 153 victims recommended by the National Human Rights Commission (NHRC). The decision was taken at a meeting held at the Office of the Prime Minister and Council of Ministers in Singha Durbar, according to government spokesperson and Minister of Education and Sports Sasmit Pokharel. The compensation is part of the government’s response to recommendations made by the constitutional human rights body for victims entitled to relief under applicable provisions. The Cabinet also decided to give consent to the Government of Portugal to establish a Consulate General in Kathmandu.

Agriculture Minister Proposes Seasonal Import Restrictions to Protect Domestic Harvests

Forest and Environment Minister Gita Chaudhary emphasized the necessity of restricting agricultural imports during peak domestic harvesting periods to ensure fair market value for local producers. During a ministerial consultation, proposals were advanced to establish minimum support prices for staple food crops including paddy, wheat, maize, and millet, alongside restrictions preventing import permits until domestic yields are fully absorbed. Minister Gita Chaudhary suggested implementing a temporary four-month import moratorium during harvest seasons and utilizing state trading mechanisms with funding adjustments if private procurement remains insufficient. Discussions additionally addressed honey and dairy import regulations, tea export promotion frameworks through bilateral recognition agreements, geographical indication legislation, and market price monitoring for agricultural commodities.

Ministry of Energy Advances Strategic Reforms in Generation, Transmission, and Trade

The Ministry of Energy, Water Resources and Irrigation is advancing strategic measures to boost investments and economic growth under Minister Biraj Bhakta Shrestha. The Nepal Electricity Authority extended the Required Commercial Operation Date for 27 projects totaling 540.47 megawatts across 4 progress-based categories, while 320 projects totaling 8,292 megawatts remain under construction. A subcommittee submitted recommendations for new Power Purchase Agreements. Additionally, the 400-kilovolt West Seti transmission line is progressing under a public-private partnership model costing approximately Rs 20 billion, and wheeling charges for fiscal year 2026/27 were fixed at Rs 413,000 per megawatt monthly. Furthermore, all border points between India and China are closed.

Land Ministry Transfers 44 Officers Across Administration and Engineering Services

The Ministry of Land Management, Cooperatives, and Poverty Alleviation, alongside the Ministry of Federal Affairs and General Administration, has executed the simultaneous transfer of 44 Gazetted Second-Class officers. The administrative realignment involves personnel spanning education, general administration, and engineering services. Official administrative records confirmed that the coordinated personnel movement was finalized yesterday as part of routine civil service management to optimize institutional efficiency across governmental departments and regional offices.