Nepal News Evening Economic Brief – October 15, 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:

Government and World Bank Explore Catastrophe Bond for Earthquake Financing

On Thursday, the government and the World Bank have signed an agreement to assess the feasibility of a catastrophe bond that could help the country secure rapid funding after a major earthquake. The agreement brings together the government and the World Bank Group Treasury to examine how international capital markets could provide financial protection against natural disasters and supplement existing disaster management efforts. The agreement was signed in the presence of Finance Minister Swarnim Wagle and Finance Secretary Ghanshyam Upadhyaya, along with Jorge Familiar, the World Bank’s vice president of treasury, and David Sislen, divisional director for Maldives, Nepal and Sri Lanka. A catastrophe bond allows disaster risks to be transferred to investors, with funds released when specified disaster conditions are met. The proposed instrument could offer an additional financing source for emergency response and recovery. The agreement initiates a feasibility assessment; no bond has been issued.

IMF Chief Expresses Solidarity with Nepal in Meeting with Finance Minister and Governor

International Monetary Fund (IMF) Managing Director Kristalina Georgieva has said the fund’s support for Nepal, including emergency financing, is expected soon following the devastating floods that have affected the country. In a post on X on Thursday, Georgieva said she had held a productive discussion with Finance Minister Swarnim Wagle and Nepal Rastra Bank Governor Biswo Nath Poudel on the sidelines of the annual meetings of the IMF and the World Bank Group in Bangkok, Thailand. Georgieva said she had expressed condolences and solidarity with Nepal following the floods and discussed the IMF’s support, including emergency financing expected soon. However, she did not specify the amount of funding or when it would be provided. The meeting took place as Nepal continues its efforts to respond to the damage caused by the floods and support recovery in affected areas.

NEPSE Rises by 4.67 Points with Rs 4.71 Billion Turnover

The Nepal stock market (NEPSE) index closed at 2625.93 points on Thursday, marking an increase of 4.67 points. The total turnover for the day reached Rs 4.71 billion, according to the NEPSE. A total of 13.6 million shares were traded during the session. Among the companies involved, the share prices of 172 companies increased, while 90 companies saw a decline. The prices of 15 companies remained unchanged. Beni Hydropower Project recorded a share price gain of 14.98 percent, while other companies saw a maximum growth rate of 6.35 percent. The decline in share prices was limited to a maximum of 3 percent. Kumari Bank led the market in terms of turnover, with transactions totaling Rs 230 million and its share price reaching Rs 238 per unit. Api Power followed with a turnover of Rs 220 million, while Ghalemdi Hydro recorded Rs 180 million in transactions. In terms of sectoral indices, the commercial bank, manufacturing and processing, trading, and others sectors declined, while all other sectors recorded gains.

NRB Reports Foreign Exchange Reserves at Rs 4 Trillion

The country’s gross foreign exchange reserves expanded by 4.3 percent to reach Rs 4.065 trillion through the conclusion of the month from August 17 to September 16, compared to Rs 3.897 billion recorded at the close of the last month of the last fiscal year 2025/26. According to macroeconomic statistics published by Nepal Rastra Bank, reserves held directly by the central bank increased by 4.0 percent to Rs 3.610 trillion, while holdings maintained by commercial banks and financial institutions grew by 7.2 percent to Rs 455.01 billion with Indian currency accounting for 21.3 percent of total reserves. Expressed in United States currency, total reserves rose by 4.6 percent from USD 25.31 billion to USD 26.48 billion, maintaining a level sufficient to cover 20.9 months of merchandise imports and 17.8 months of merchandise and service imports based on trade performance during the first two months of fiscal year 2026/27.

Preliminary Insurance Claims Surpass Rs 20.9 Billion for Bhote Koshi Floods

Insurance companies operating in Nepal received preliminary damage claims exceeding Rs 20.9 billion (filed by policyholders following the destructive flash floods along the Bhote Koshi river basin. The Nepal Insurance Authority reported that through October 14, a cumulative total of 2,427 initial claims were lodged across 18 registered non-life insurance institutions, of which insurers have disbursed an aggregate sum of Rs 235.2 million. Among individual underwriters, Himalayan Everest Insurance recorded the highest volume of estimated claims at Rs 66.1 million across 161 claimants, while Shikhar Insurance led in total claim settlements, disbursing Rs 198.9 million. Sectoral analysis indicates that property insurance registered the largest prospective liabilities at Rs 957.2 million across 572 claims, followed by engineering and contractor’s all-risk policies (Rs 43.97 million), motor insurance (Rs 28.50 million), and marine transit insurance (Rs 23.41 million).

Annual Consumer Inflation Accelerates to 6.34%

Annual point-to-point consumer price inflation in the country climbed to 6.34 percent in the month from August 17 to September 16, marking a sharp acceleration compared to the 1.87 percent inflation rate recorded during the corresponding month of the previous year. Data published by Nepal Rastra Bank revealed that food and beverage inflation reached 7.54 percent, driven by steep retail price hikes in ghee and edible oil (16.68 percent), fruits (15.99 percent), sugar and confectionery (12.14 percent), fish and meat (7.34 percent), and fresh vegetables (7.07 percent), while non-food and service inflation stood at 5.69 percent, exacerbated by a 12.77 percent surge in transportation subgroup prices, 8.83 percent in alcoholic beverages, and 7.06 percent in apparel and footwear. Across regional classifications, rural inflation registered at 6.78 percent and urban inflation at 6.19 percent, with Madhesh Province recording the highest provincial rate at 7.48 percent and Sudurpaschim Province the lowest at 5.16 percent, while annual wholesale inflation surged to 8.08 percent alongside India’s consumer inflation standing at 4.82 percent in August 2026.

Country Imports Playing Card Worth Rs 63 Million in the 2 Months of FY

While commercial playing card usage remains a popular domestic pastime during festive gatherings, official customs data highlights that the government permits the unhindered commercial importation of playing cards despite enforcing strict legal prohibitions against unauthorized public gambling operations. According to trade statistics released by the Department of Customs, the country imported 2,355,801 individual packs of playing cards valued at Rs 63 million during the first two months of fiscal year 2026/27, generating Rs 38.4 million in customs tariff revenue. Department Information Officer Kishore Bartoula confirmed that import volumes totaled 1,992,265 packs valued at Rs 51.8 million in July, originating primarily from China (Rs 46.7 million for 1.4 million packs) and India (Rs 5 million for 524,000 packs), alongside negligible shipments from Japan and the United States, before expanding further in August with additional imports valued at Rs 11.1 million for 363,536 packs.