Nepal News Evening Economic Brief – October 2, 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:

NEPSE Falls 11.90 Points As Most Stocks Decline

Nepal Stock Exchange (NEPSE) fell 11.90 points on Friday to close at 2,587.25 points as selling pressure dominated the final trading day of the week. The market remained largely negative, with 207 companies recording declines, while shares of 61 companies gained and 11 remained unchanged. A total of 356 securities were traded through 43,685 transactions during the day. Investors exchanged 11.91 million shares worth Rs 4.29 billion. Most sectoral indices also declined, with the manufacturing and processing group recording the steepest fall. Life insurance, development banks and hydropower companies also came under notable selling pressure. NMB Bank and Siddhartha Bank recorded the highest gains among investors, while Sindhu Development Bank suffered the biggest loss, declining 8.55 percent.

Nepal Rastra Bank Introduces New Rs 1,000 Banknote With Updated Security Features

Nepal Rastra Bank has put a newly designed Rs 1,000 banknote into circulation, featuring updated visual elements and security features while retaining the existing size of the denomination. The new Series 2025 note uses light green as its main colour within a purple border and carries several features intended to improve identification and security. The front of the note depicts Mount Everest along with a watermark of the rhododendron and the number 1000. Roman letter M and horizontal lines have also been included to help visually impaired people identify the denomination through touch. The note contains an image of Bhagwati that appears golden when viewed directly and green when tilted, as well as a colour-changing security thread. The signature of Nepal Rastra Bank Governor Biswo Nath Poudel is featured on the note. Its reverse side carries an image of twin elephants Ram and Laxman, born to Devkali at the government elephant breeding centre in Chitwan, along with seven rhododendron flowers representing Nepal’s seven provinces and the historic pillar at Lhochok in Hanuman Dhoka.

Currency In Circulation Falls Below Rs 800 Billion Mark

The amount of currency circulating in Nepal has declined to Rs 794.02 billion by the end of the latest two-month period, falling below the Rs 800 billion mark. The figure stood at Rs 801.62 billion at the end of the previous fiscal year, meaning currency in circulation has declined by about Rs 7.62 billion over the two months. At the same time, Nepal Rastra Bank’s overall balance sheet expanded significantly, crossing Rs 4 trillion. The central bank’s total assets and liabilities increased from Rs 3.875 trillion to Rs 4.044 trillion during the period, a rise of Rs 169.09 billion. The increase was largely linked to growth in foreign assets and funds deposited in government accounts. Foreign currency assets rose from Rs 3.73 trillion to Rs 3.90 trillion, including Rs 2.743 trillion invested in foreign securities, Rs 639.74 billion in fixed deposits with foreign banks and Rs 253.97 billion in gold certificates.

Government Plans 27 New Laws To Support Economic Reform

The government plans to introduce 27 new laws during the current fiscal year as part of its broader economic reform agenda. The planned legislation is intended to support budgetary improvements and create a legal framework for economic reforms, while several existing laws are also being reviewed or repealed. The government has already moved ahead with the repeal of 15 old laws and is working on additional legislation through the concerned ministries. Legal reforms sought by the private sector are also being incorporated into the process. The broader reform exercise includes changes to laws affecting investment and economic activity, with the government reviewing proposals previously raised by business organisations. A large number of laws have also been identified for possible amendment, with 166 laws reportedly under consideration and 54 already approved by the Cabinet. The initiative comes as the government seeks to update the legal framework supporting investment, business activity and infrastructure development.

Insurance Regulator Offers Six-Month Interest-Free Relief To Flood-Affected Policyholders

The Nepal Insurance Authority has introduced relief measures for policyholders affected by the severe floods, allowing those unable to make regular premium or policy-loan instalment payments to receive an extension of up to six months without interest. The measure applies to life insurance policyholders facing payment difficulties because of flood-related circumstances. Insurers have also been instructed to simplify documentation and procedures for death claims, surrender payments, policy loans and maturity payments in consideration of the difficulties faced by affected policyholders and beneficiaries. For death claims, basic information including the insured person’s name, date and cause of death, policy number and relationship with the claimant will be required. Claimants must also provide documents establishing their relationship with the insured and an identification document issued by a government agency. The measures are intended to reduce procedural and financial pressure on people affected by the disaster while ensuring access to insurance-related benefits.

Public Procurement System Faces Cybersecurity And Technical Concerns

The Nepal Construction Business Federation has raised concerns over technical problems, cybersecurity risks and difficulties faced by contractors while submitting bids through the public procurement system. Discussions with the Public Procurement Monitoring Office covered problems associated with both hardcopy bid submission and the electronic government procurement system, including its upgrading and operation. Construction businesses have sought stronger safeguards for data and system security and an environment in which technical problems do not prevent bidders from participating in procurement processes. They have also called for alternative arrangements when failures in the electronic system disrupt procurement activities. One proposal is to allow both hardcopy and electronic bid submissions until the upgraded system becomes fully operational, while another is to temporarily avoid launching new tenders except those considered essential. The federation has also sought extensions for tenders that have already been published if technical problems prevent contractors from submitting bids within the existing deadlines.

Private Sector Gets Access To National Power Transmission Grid Under New Tariff

Private-sector electricity users and other third parties will be able to use Nepal’s national transmission grid under transmission charges fixed by the Electricity Regulatory Commission. The commission has announced tariffs for short-term, medium-term and long-term use of the national transmission network under the policy of establishing open access to the transmission system. For use ranging from 24 hours to one year, the charge has been fixed at 57 paisa per kilowatt-hour. For periods beyond one year, a wheeling charge of Rs 412,755 per megawatt per month has been set. The rates have been determined using audited financial statements of the Nepal Electricity Authority. The arrangement is designed to allow private-sector entities and third parties to access the national transmission system under an open-market framework. The move is expected to establish a defined pricing mechanism for the use of the transmission infrastructure and support wider participation in Nepal’s electricity market.