Nepal News Evening Economic Brief – October 08, 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:

Department Directs Employers to Provide Festival Expenses to Workers

The Department of Labor and Occupational Safety has directed all employers and establishments to mandatorily provide festival expenses to their workers as required by law. In a press release issued Thursday, Deputy Director General Bipin Rajbhandari said Section 37 of the Labor Act, 2017, requires every worker to receive an amount equivalent to one month’s basic remuneration each year as festival expenses. The provision applies to festivals celebrated according to prevailing religious, cultural and traditional practices. The Department said workers who are denied the legally mandated festival expenses can file a complaint or application with the Labor and Employment Office or the Department of Labor and Occupational Safety with jurisdiction over their workplace. The Department urged all employers and establishments to ensure that workers receive the benefit in accordance with the Labor Act.

Domestic Airlines Agree to Offer Festival-Season Tickets Below Approved Fares

Domestic airlines have agreed to sell air tickets at prices below the approved fare rates during the upcoming festival season following complaints about rising domestic airfares. The agreement was reached during a discussion held on Thursday by the Civil Aviation Authority of Nepal (CAAN) with officials and representatives of domestic airlines at the initiative of Prime Minister Balendra Shah and Minister of Culture, Tourism and Civil Aviation Khadak Raj Paudel. According to the Office of the Prime Minister and Council of Ministers, the airlines agreed to make tickets available at fares lower than the approved rates and publish the applicable fares on their respective ticket sales platforms. The Prime Minister’s Office said the discussion was held to ensure effective implementation of the decision made on December 13, 2015, which set minimum and maximum fares for domestic air services, particularly to address complaints about increased fares during major festivals.

NEPSE Rises 2.31 Points with Nearly Rs 4 Billion Turnover

The Nepal Stock Exchange (NEPSE) index rose 2.31 points on Thursday to close at 2,574.65, indicating a slight improvement in the share market. The market recorded a total turnover of Rs 3.936 billion, with more than 11.2 million shares traded through 43,812 transactions involving 354 stocks. Of the 278 companies traded, share prices of 140 companies increased, while 127 declined and 11 remained unchanged. Ghalemdi Hydro Power recorded the highest turnover, with shares worth more than Rs 256.5 million traded. Himal Dolakha Hydropower, Peoples Hydropower, Sonapur Minerals and Himalayan Power Partner also ranked among the top five companies by turnover. Kutheli Bukhari Small Hydropower posted the highest gain, rising 15 percent, while RBB Mutual Fund recorded the largest decline, falling 8.07 percent.

LPG Consumers to Get Cross-Brand Cylinder Exchange Privilege

LPG consumers in Kathmandu Valley will soon be able to exchange empty cylinders of one brand for filled cylinders of another brand without paying any additional fee during the festive season. The arrangement is being coordinated by Nepal Oil Corporation (NOC), LPG industries, dealers and security agencies to ensure consumers, particularly those with only one cylinder, do not face shortages because of brand differences. NOC Executive Director informed the corporation had asked LPG industries to introduce the facility to provide relief to consumers. He said consumers would not be charged the additional fee of up to Rs 300 that had previously been reported for cross-brand cylinder exchanges. The final locations for the exchange service are yet to be decided.

Electricity Regulatory Commission Receives Annual Performance Report for Last FY

Minister for Energy, Water Resources, and Irrigation Biraj Bhakta Shrestha received the formal annual performance report for the fiscal year 2025/26 from Electricity Regulatory Commission Chairperson. During the submission briefing, Minister Shrestha emphasized that regulatory frameworks must actively cultivate investor confidence, balance consumer interests, and strengthen energy security against climate-induced supply disruptions. The commission’s documentation highlights the formulation of key administrative instruments, including dispute resolution bylaws, open-access transmission directives, reservoir-based power purchase guidelines, and consumer tariff determination regulations. Institutional priorities for the upcoming fiscal period concentrate on institutional strengthening, regulatory expansion, and structured facilitation of structural reforms across domestic power generation, transmission, and distribution networks.

Energy Minister Urges Widespread Adoption of Digital Electricity Tariff Payments

Minister for Energy, Water Resources, and Irrigation Biraj Bhakta Shrestha launched an appeal encouraging consumers to transition toward digital platforms for electricity utility bill settlements. Highlighting official data indicating that approximately 73 percent of citizens continue to utilize physical counters, the minister noted that maintaining 655 decentralized collection counters across 129 distribution branches incurs an annual operational expenditure of Rs 597.9 million. Minister Shrestha emphasized that expanding electronic payment adoption will optimize institutional resource allocation, enhance financial transparency, and mitigate transit inconveniences for households, while urging community leaders and literate citizens to assist elderly relatives in navigating digital financial applications.

Power Leakage Declines Across Madhesh Province

Power distribution loss indicators across Madhesh Province have demonstrated a consistent downward trajectory, registering a reduction of 1.61 percent during the initial two months of the fiscal year 2026/27 compared to the preceding period. According to statistical data released by the Nepal Electricity Authority provincial office, overall leakage fell from 22.56 percent during the months from mid-July to mid-September of the previous fiscal year to 20.95 percent in the current reporting window. Regional administrative efforts, including unauthorized hook removal, billing reconciliation, and systematic meter replacements, contributed to the operational improvement. District performance metrics indicate that Simara distribution center in Bara maintained a minimal loss rate of 2.94 percent, whereas Maulapur distribution center in Rauthat recorded elevated loss levels. Concurrently, the regional authority collected Rs 200.9 million in outstanding arrears following the disconnection of service lines for 8,782 delinquent accounts.

Fast Track construction reaches 50% after a decade

Construction of the national pride project Kathmandu-Terai/Madhesh Expressway, commonly known as the Fast Track, has reached around 50 percent in overall physical progress after more than a decade of work, according to the Army. The Army, which is managing the project, said more than Rs 94 billion has already been spent on the expressway. As the project is unlikely to be completed within its existing deadline, the government has extended the completion date for the third time by three years, pushing it to March/April 2030. Construction of major tunnels and bridges has made significant progress, with domestic and international contractors working under 12 packages. However, the long-standing uncertainty over the project’s Zero Point, particularly the Khokana-Bungmati section, remains unresolved. The government has said it is preparing to settle the issue and establish Khokana as the project’s Zero Point.