Kathmandu: Saudi Arabia has officially ended its 70-year-old Kafala (sponsorship) system, a move expected to benefit more than 13 million foreign workers, according to the Associated Press (AP).



The landmark reform, first announced in June 2025, has now been formally implemented, marking a major shift in the country’s labor framework.



The decision will particularly impact migrant workers from India, Bangladesh, Nepal, and the Philippines, who make up the majority of Saudi Arabia’s foreign labor force.



Despite the reform in Saudi Arabia, the Kafala system continues to exist in other Middle Eastern countries, including the United Arab Emirates, Kuwait, Oman, Bahrain, Lebanon, and Jordan.



The system had long been criticized by international rights groups for giving employers excessive control over migrant workers, often leading to exploitation and abuse.

Saudi Arabia abolishes 70-year-old Kafala System, benefiting over 13 million migrant workers

Kathmandu: Gold prices soared to a new record in the domestic market on Friday, surging by Rs 7,100 per tola to reach Rs 258,000, according to the Federation of Nepal Gold and Silver Dealers’ Association.



The price of fine gold was recorded at Rs 250,900 per tola on Thursday, marking a remarkable weekly gain of Rs 20,000 per tola. Analysts attributed the sharp rise to heightened global economic uncertainty and stronger international gold prices.



Silver also mirrored the upward momentum, increasing by Rs 75 per tola to trade at Rs 3,350 per tola, compared to Rs 3,275 the previous day. The white metal has gained Rs 395 per tola this week, setting new records alongside gold.



While investors continue to flock to gold as a safe-haven asset amid inflation and currency fluctuations, jewelers report that retail demand has slowed due to the soaring prices.

Gold hits record high of Rs 258,000 per tola in Nepali market

Kathmandu: Minister for Finance Rameshore Prasad Khanal has called on the international community to visit Nepal, emphasizing the nation’s rich natural beauty and diverse cultural heritage.



Speaking at a discussion on “Sustainable Tourism: For Employment, Livelihood, and Economic Growth,” organized by the World Bank Group on Thursday in the United States, Minister Khanal highlighted tourism’s vital role in promoting economic growth and generating employment.



He said Nepal warmly welcomes visitors from around the world and is committed to offering them world-class services and hospitality. The event was attended by representatives from various countries.

Finance Minister urges global community to visit Nepal

Kathmandu: The price of gold has reached an all-time high in the domestic market today. 



The price of the yellow metal has increased by Rs 400 per tola (11.66 grams) compared to its price on Tuesday and reached Rs 248,900, today, according to the Federation of Nepal Gold and Silver Dealers' Association. 



However, the price of silver has decreased by Rs 85 per tola and is currently being traded at Rs 3,240. Gold was traded at Rs 248,500 per tola and silver at Rs 3,325 per tola on Tuesday, Similarly, the Federation stated. The price of gold is 4,186.68 US dollar per ounce in the international market today.

Gold price hits all-time high

Kathmandu: Remittance inflows increased 33.1 percent to Rs.352.08 billion in the two months of 2025/26 compared to an increase of 15.8 percent in the same period of the previous year. This is stated in the report - Current Macroeconomic and Financial Situation of Nepal – published by Nepal Rastra Bank (NRB) on October 14. 



The report is based on two-month data ending Mid-September of Fiscal Year 2025/26. During mid-August to mid-September (Bhadau month), remittance inflows stood at Rs. 174.67 billion. In the same period of the previous year, such inflows were Rs. 127.99 billion. 



In the US Dollar terms, remittance inflows increased 27.6 percent to 2.52 billion in the review period. Such inflow had increased 14.2 percent in the same period of the previous year. According to the NRB, net secondary income (net transfer) reached Rs.384.88 billion in the review period. 



Such income was Rs.287.76 billion in the same period of the previous year. The number of Nepali workers, both institutional and individual, taking first-time approval for foreign employment stands at 90,198 and taking approval for renew entry stands at 45,884. In the same period of the previous year, such numbers were 76,485 and 40,583 respectively. 



Current Account and Balance of Payments The current account remained at a surplus of Rs. 130.69 billion in the review period. Such surplus was Rs. 54.41 billion in the same period of the previous year. In the US Dollar terms, the current account registered a surplus of 934.7 million in the review period against a surplus of 405.6 million in the same period of the previous year. 



In the review period, net capital transfer amounted to Rs.2.20 billion. In the same period of the previous year, such transfer amounted to Rs.1.20 billion. Similarly, in the review period, Rs.1.27 billion foreign direct investment (equity only) was received. 



In the same period of the previous year, foreign direct investment inflow (equity only) amounted to Rs.2.71 billion. Balance of Payments (BOP) remained at a surplus of Rs.153.68 billion in the review period. Such surplus was Rs.101.77 billion in the previous year. In the US Dollar terms, the BOP remained at a surplus of 1.10 billion in the review period compared to a surplus of 758.4 million in the same period of the previous year. 



Foreign Exchange Reserves Gross foreign exchange reserves increased 7.6 percent to Rs.2881.35 billion in mid-September 2025 from Rs. 2677.68 billion in mid-July 2025. In the US dollar terms, the gross foreign exchange reserves increased 4.7 percent to 20.41 billion in mid-September 2025 from19.50 billion in mid-July 2025. 



Of the total foreign exchange reserves, the reserves held by NRB increased 6.9 percent to Rs.2582.38 billion in mid-September 2025 from Rs. 2414.64 billion in mid-July 2025. Reserves held by banks and financial institutions (except NRB) increased 13.7 percent to Rs.298.97 billion in mid-September 2025 from Rs.263.04 billion in mid-July 2025. 



The share of Indian currency in total reserves stood at 22.5 percent in mid-September 2025. Foreign Exchange Adequacy Indicators Based on the imports of the two months of 2025/26, the foreign exchange reserves of the banking sector is sufficient to cover the prospective merchandise imports of 19.7 months, and merchandise and services imports of 16 months. 



The ratio of reserves-to-GDP, reserves-to-imports and reserves-to-M2 stood at 47.2 percent, 133.1 percent, and 36.6 percent respectively in mid-September 2025. Such ratios were 43.8 percent, 128.1 percent, and 34.1 percent respectively in mid-July 2025.

Remittance inflows reach Rs 352.08 billion in first two months of FY 2025/26

Kathmandu: The government has decided to take a concessional loan of US$100 million (approximately Rs 14.25 billion) from the Asian Development Bank (ADB) to support the Public Financial Management Reform and Service Delivery Transfer Program.



A Cabinet meeting held on Thursday approved the borrowing as part of efforts to strengthen the government’s budgetary system through external financing from a key development partner.



To facilitate the process, the government will form a negotiation team led by a joint secretary from the Ministry of Finance, officials said.

Government to borrow $100 million from ADB for financial reform program

Kathmandu: The Kathmandu Metropolitan City has announced a ban on the supply of imported flowers and flower products within the city during the upcoming Tihar festival. 



At a press meet held today, the Metropolitan Police Force stated that the decision aims to promote domestic farmers. Similarly, the local government will establish flower supply centers at 32 locations, including NB Centre in New Baneshwor, Phoenix Tower in Shankhamul, Sifal Chaur, Chabahil Ganeshthan, KL Tower, Old Baneshwor, and Star Mall in Putalisadak, from October 17 to 22. 



The Force also announced plans to confiscate flowers if they are found to be imported. At the event, President of Floriculture Association of Nepal, Rajesh Bhakta Shrestha, expressed support for the local government's policy. 



He also shared that the Association will be organizing the 18th Godavari (Chrysanthemum) Flower Competition from October 15 to 18. According to the Association, domestic flower production is sufficient to meet market demand.

Imported flowers to be restricted in KMC during Tihar festival

Kathmandu: The Government of Nepal and the Government of the Federal Republic of Germany have signed two important agreements regarding financial and technical assistance. 



At a programme organised at the Ministry of Finance today, Joint-Secretary at the Finance Ministry, Dhaniram Sharma, on the behalf of the Government of Nepal and Ambassador of Germany to Nepal, Udo Volz, on the behalf of German government, signed on the agreements. 



The two agreements would support the priorities of Nepal's energy, health, agriculture, and inclusive development, shared the Ministry. Under the Financial Aid Agreement, the German government has expressed commitment up to 20 million Euro support for the Power Distribution Strengthening Programme. 



The project would be focused in upgrading and strengthening Nepal's power distribution system, it is said. The project would be implemented through Nepal Electricity Authority (NEA) and an implementation agreement will be signed between NEA and German Development Bank for the same. 



The agreement would be implemented till September 2, 2029. It is stated that the technical cooperation agreement is based on the long-term framework agreement signed in 1974 and the amended agreement of 2009. 



Germany will provide support in various sectors with an estimated commitment of up to 21 million Euros under this agreement. The said project will support the health sector by continuously providing support for national gender equality and social inclusion strategies in the health sector, and will help to enhance the quality of infrastructure in the health system. 



Similarly, the project aims to support programmes that promote the development of agriculture and the private sector, and an inclusive and climate-resilient economic development. The project will also provide consultative and technical assistance through further studies and an expert fund. 



It is stated in the agreement that the implementation of this technical assistance agreement will also be completed within five years, that is, by 5 September 2029. On the occasion, Ministry Joint Secretary Sharma expressed gratitude for Germany's continuous support in the development endeavours of Nepal. 



Ambassador Volz said that this new commitment has further strengthened Germany's collaboration with Nepal and the Nepalese people in the areas of energy, sustainable economic development and health.

Nepal and Germany sign two agreements

Kathmandu: The government has removed Hitendra Dev Shakya from the post of Executive Director of the Nepal Electricity Authority (NEA), appointing Deputy Executive Director Manoj Silwal as his successor.



The decision was made during a cabinet meeting on Sunday. Prior to the announcement, NEA Managing Director Kulman Ghising held a one-on-one discussion with Shakya, according to officials.



This marks another leadership reshuffle at the state-run power utility. In March, the KP Sharma Oli-led government had removed Ghising from the top post following disputes with then Energy Minister Deepak Khadka over unpaid industrial dues. Shakya was subsequently appointed to replace him.



With Sunday’s decision, Silwal now takes charge as NEA’s new executive director, as the authority faces mounting challenges in power supply, industrial demand, and financial management.

Government removes NEA Chief Shakya, appoints Silwal amid leadership shifts

Kathmandu: The business leaders from the private sector have vowed revival, while expressing sorrow over the loss in the industrial and commercial enterprises during the Gen-Z protest taken place on September 8 and 9. 



During a meeting with Prime Minister Sushila Karki on Sunday, the business leaders mentioned that they would rise again with new vigour. 



The private sector witnessed a serious setback from vandalism and arson, President of the Federation of Nepalese Chamber of Commerce and Industry (FNCCI) Chandra Prasad Dhakal said. "As per the preliminary estimates, the total damage is around Rs 80 billion to Rs 100 billion. But, we won't remain idle by being disappointed, will rise again," Dhakal said. 



He shared the vandalism and arson are not merely impacts of the protests. The lootings and arsons were carried out deliberately, he asserted, demanding that those involved in vandalism and arson must be booked immediately. 



Also speaking at the event, Chair of the Confederation of Nepalese Industries Birendra Raj Pandey stated that the private sector has suffered the worst in every movement. "Against this context, special subsidy and concessional loan are needed to boost up confidence of the private sector," Pandey reminded. 



Likewise, Chair of the Federation of Nepal Cottage and Small Industries Umesh Singh, informed that almost 500,000 small and cottage industries out of total 900,000 in the country were not renewed and asked to waive off the renewal fees for once for such industries. 



Similarly, President of the Nepal Chamber of Commerce, Kamalesh Agrawal, suggested that the government that it unveiled a special integrated security plan to safeguard industrial property and develop confidence for investment. 



He was of the view that the current situation has marred both the investors and industrialists. On the occasion, President of the Federation of Contractors' Association of Nepal, Rabi Singh, viewed that this government should initiate a campaign for a corruption-free environment in the country along with the preparations for elections.

Private sector estimates loss of Rs 100 billion during Gen-Z protests

Kathmandu: The price of gold in the domestic market today hits all-time high, reaching 207,900 per tola (11.66 grams). The price of gold has risen in the international market and its ripple has seen in the domestic market, it is said. 



According to the Federation of Nepal Gold and Silvers Dealers' Association, on Tuesday, the price of gold was Rs 205,900 per tola and it soared by Rs 2,000 per tola on Wednesday. 



However, the price of silver slightly fell today to set at Rs 2,480 per tola, Rs five less than of Tuesday. According to international media, the price of gold is 3,536 US dollar per ounce in the international market today.

Gold price hits all-time high, reaching 207,900 per tola in Nepali market

Kathmandu: The price of gold in Nepal surged by Rs 3,000 per tola on Sunday, setting a new record high in the domestic market just days after crossing the Rs 200,000 mark for the first time.



According to the Federation of Nepal Gold and Silver Dealers’ Association, fine gold, which was traded at Rs 200,600 per tola on Friday, climbed to Rs 203,600 per tola today.



Silver prices also jumped sharply, rising by Rs 65 per tola. The precious metal is now being traded at Rs 2,425 per tola, up from Rs 2,360 per tola on Friday, also an all-time high.

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