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17th September 2025, Kathmandu
The Ministry of Finance in Nepal has clarified that banks and customs offices will remain open on all public holidays, with the exception of Dashain.
Banks Open on Public Holidays
This decision was announced by Finance Secretary Ghanshyam Upadhyay during a Tuesday consultation meeting with private sector representatives. The move aims to prevent disruptions in financial and trade operations, particularly in import-export activities, and to ensure business continuity. The government also confirmed it is preparing a comprehensive Integrated Trade Revival Plan and is positive about providing tax and monetary relief to support economic stability.
Background and Rationale for the Decision
The decision to keep banks and customs offices operational on most public holidays is a direct response to the economic disruptions caused by recent nationwide unrest and logistical challenges. The Ministry of Finance, under the leadership of Finance Minister Rameshwar Khanal, wants to send a clear signal of support to the private sector and to normalize economic activities. By ensuring banks remain open, the government aims to facilitate smoother business continuity, preventing cash flow issues and delays in financial transactions that are common during prolonged holidays. Similarly, keeping customs offices open is crucial for managing supply chains, especially for imports and exports. This is particularly important for a country like Nepal, which is heavily reliant on trade for essential goods and raw materials.
Secretary Upadhyay also highlighted the government’s efforts to address logistical hurdles, such as the reopening of the Tatopani border point, a critical trade gateway with China that has been blocked due to landslides. While sources indicate that the Tatopani border has since been reopened, this remains a key focus for the government to ensure seamless cross-border trade. The reopening of this route, along with other efforts to maintain stable trade with India, is a central part of the government’s strategy to bolster the nation’s economy.
Stakeholder Engagement and Policy Direction
The meeting on Tuesday brought together top government officials and key representatives from influential business and industrial associations, including the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and the Nepal Chamber of Commerce, as well as major corporate groups. During the consultation, these industry leaders presented their demands for tax relief, easier access to credit, and a speedy settlement of insurance claims to aid industrial recovery. This dialogue underscores a collaborative approach between the public and private sectors to navigate the current economic climate.
In response, Finance Minister Rameshwar Khanal assured the business community of the government’s commitment to implementing policies that will foster economic growth. He announced that the Ministry of Finance is actively preparing a comprehensive Integrated Trade Revival Plan. This plan is expected to outline specific measures to support business resilience and facilitate seamless financial transactions during public holidays and festivals. The Minister’s statement that the government is “positive toward providing relief measures through tax and monetary policy” has been a welcome assurance for the business community, which has faced significant losses due to recent disturbances.
Implications and Expected Outcomes
This policy has multiple positive implications for Nepal’s economy. For businesses, it provides a much-needed level of predictability and continuity. They can now rely on banking services for payments, deposits, and other financial transactions on public holidays, which is crucial for maintaining steady cash flow and managing operational costs. The decision to keep customs offices open will also help minimize delays in the import-export process, which is vital for supply chain management, particularly with major festivals like Tihar and Dashain approaching. The new policy, which effectively makes all non-Dashain public holidays a regular business day for banking and trade, is expected to enhance business confidence and attract both domestic and foreign investors. By demonstrating a flexible and supportive approach, the government signals that it is committed to creating a more predictable and investor-friendly business environment. The initiative is a practical step toward economic stability and private sector support, ensuring that key financial and trade functions can continue without interruption, thereby strengthening the nation’s overall economic resilience. This move shows that while cultural traditions are respected, the government is prioritizing economic continuity and stability.
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