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 Index Rises After Three Consecutive Days of Decline

The Nepal Stock Exchange (NEPSE) index saw a slight increase on Tuesday, closing up 3.21 points at 2,565.16, breaking a three-day losing streak. However, the total turnover decreased, with Rs 3.62 billion in shares traded, down from Rs 4.51 billion on Monday. A total of 142 companies saw their stock prices rise, while 102 declined. All group indices showed less than a 1% change. Four recently listed companies, namely Bandipur Cable Car, Mabilung Energy, Sagar Distillery, and Bungel Hydropower, saw their share prices surge by 10%. Conversely, City Hotel experienced the steepest decline, falling by 4.96%.

Nepal Secures $14.4 Million in Grants for Climate Resilience

Nepal has secured a total of USD 14.4 million in grant assistance for various environmental and livelihood projects. The country will receive USD 8.7 million from the Global Environment Facility (GEF), following an agreement with the Food and Agriculture Organization (FAO), to implement a project in central Nepal to make paddy-based farming and food systems climate-resilient. Separately, the government accepted USD 2.2 million for a project focused on forest and mountain ecosystem restoration in Sudurpashchim. Additionally, a grant of USD 4.2 million was approved for a local-level climate-resilient livelihood project to help communities cope with climate-related hazards like floods and droughts.

Nepal Discusses Graduation to Developing Nation Status

The National Planning Commission (NPC) has initiated high-level consultations regarding Nepal’s transition from a Least Developed Country (LDC) to a Developing Nation. The discussions, which review progress, remaining preparatory tasks, and future strategies, aim to ensure a successful graduation by the target date of mid-December 2026. The meeting, chaired by Finance Minister Rameshore Khanal, included key stakeholders such as former finance ministers and private sector leaders. However, the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) President, Chandra Prasad Dhakal, formally requested the government to seek an extension of at least three years. This extension is proposed to mitigate potential severe negative impacts on the private sector, production, and employment, especially considering the current volatile economic environment.

Shivam Cement Pays First Installment of Electricity Arrears

Shivam Cement has paid the Nepal Electricity Authority (NEA) the first installment of its outstanding premium tariff dues for the dedicated and trunk power lines. The NEA had previously cut off power to the Hetauda-based factory on October 21, 2025, after the company failed to pay according to the notice issued on October 18, 2025. The total outstanding arrear, covering the period from January 2016 to April 2018, stands at Rs 668.9 million. Shivam Cement has now paid Rs 23.8 million, the first of 28 installments, allowing the NEA to immediately restore the electricity supply to the industry.

Kailali District Reports Drop in Monsoon Paddy Yield

The Kailali district has reported a noticeable decline in its monsoon paddy production this year, registering a 5.26% decrease compared to the previous year. According to the Agricultural Knowledge Center, this represents a shortfall of 17,135 metric tons. The district produced 308,434 metric tons of paddy this year from the same cultivated area of 68,541 hectares. The primary reasons cited for the reduced yield were erratic weather patterns, specifically a lack of necessary water during key growth stages and excessive rain during the flowering period. The overall productivity has also fallen from 4.75 metric tons per hectare last year to 4.5 metric tons per hectare this year.

Sunkoshi Marin Project Moves to Terminate Contractor’s Contract

The Sunkoshi Marin Diversion Multipurpose Project, a major National Pride Project, has initiated the contract termination process against the construction company, Patel-Raman JV. A public notice was issued on Tuesday, demanding the contractor show cause why the Rs 14.08 billion contract should not be cancelled. The drastic measure was taken because the project has achieved only 10% physical progress, despite the contract period being 61% complete. Furthermore, the project is moving to seize the contractor’s bank guarantees, which total Rs 3.6 billion (Rs 2.4 billion performance bond and Rs 1.2 billion advance payment guarantee), due to the unacceptable and unusual delay in completing the civil works.

Everest’s Historic Mt. Nuptse Route to Open by March 2026

A safer, alternative route for Mount Everest ascent, bypassing the dangerous Khumbu Icefall, is slated to become operational by mid-April 2026. This is the historic Mount Nuptse side path, first used by the pioneering climbers Tenzing Norgay Sherpa and Sir Edmund Hillary in 1953. The Department of Tourism (DoT) confirmed that approximately 80% of the construction work on this path is complete. The DoT has authorized a team led by world-renowned mountaineers Kaji Sherpa and Marc Bataille to re-establish the route. The project, which is primarily funded by French donors and associations, carries an estimated cost of $400,000 USD and is expected to significantly enhance the safety of Everest climbs.

NRB to Invest Rs 3.7 Billion from Pension Fund

Nepal Rastra Bank (NRB) has announced its intention to invest Rs 3.7 billion from its Gratuity and Pension Fund into various domestic banks and financial institutions (BFIs) for a one-year term. The funds will be distributed across different categories: Rs 2.96 billion for ‘A’ class commercial banks, Rs 555 million for national-level ‘B’ class development banks, and Rs 185 million for national-level finance companies. BFIs interested in receiving the investment must adhere to strict financial health criteria, including maintaining minimum capital adequacy, having a Non-Performing Loan (NPL) ratio below 8%, and reporting a net profit in the previous fiscal year.

41% of Cooperatives in Syangja District Are Inactive

A substantial 41% of cooperatives in Syangja district, amounting to 232 out of 574 registered cooperatives, are currently inactive. This high rate of inactivity is largely attributed to a lack of rigorous monitoring and regulation by local and provincial governments. Many cooperatives are formed simply to access collective government subsidies, becoming dormant once the grants are secured. Waling Municipality exhibits the highest number of inactive cooperatives, with 61 out of 101 registered. The public has expressed growing concern over potential misuse of funds. While some municipalities are now beginning to move towards revoking the registration of dormant cooperatives, stronger regulatory enforcement is urgently required.

Government Lists 16 Water and Energy Projects as National Priority

The government has designated 16 water and energy projects as National Priority Projects. The Ministry of Energy, Water Resources, and Irrigation listed these projects, which include those implemented by both the government and private developers across production, transmission, and distribution sectors. The list includes several existing National Pride Projects such as Babai Irrigation, Bheri Babai Diversion, Sunkoshi Marin Diversion, and Sikta Irrigation. Notably, the long-disputed Kali Gandaki-Tinau Multipurpose Project has also been included. Listing a project ensures budget certainty and prioritizes government facilitation during implementation. The decision is expected to boost agricultural development, energy security, and job creation, especially in rural areas, according to Energy Secretary Sarita Dawadi.

Sahas Urja Announces 22.1053% Dividend

Saahas Urja Limited has announced a total dividend of 22.1053% for its shareholders from the profits of the fiscal year 2081/82. The decision was made by the company’s Board of Directors. The proposed dividend includes a 21% bonus share and a 1.1053% cash dividend for tax purposes. The proposal is subject to approval at the upcoming Annual General Meeting. Furthermore, the company amended its decision regarding the rights issue; the 1:1 rights share will now be issued based on the paid-up capital after the distribution of the bonus shares. The company’s paid-up capital is projected to reach Rs 4.5738 billion following the bonus share distribution.

Government Reopens Land Plot Division Until Coming FY

The government has reopened land plot division by approving the third amendment to the Land Use Regulations, 1964. The decision was made at the Cabinet meeting on Monday and is intended to temporarily open the land market until the next fiscal year. The amended regulations are expected to take effect upon publication in the Gazette. This temporary measure comes three years after the original regulations mandated land classification (agricultural and residential, among others) before division, a rule that over half of Nepal’s 753 local governing bodies failed to implement. The government anticipates this move will revitalize the stagnant real estate market, boosting the overall sluggish national economy.

Lamjung Land Revenue Office Services Halted by Chief’s Suspension

Services at the Land Revenue Office, Lamjung, have stalled following the suspension of Chief Ram Chandra Adhikari. Adhikari was suspended effective October 8, 2025, after being implicated in a high-profile corruption case related to a land transfer in Pokhara. The Commission for the Investigation of Abuse of Authority (CIAA) has filed a corruption case against him at the Special Court, claiming Rs 5.3 million in irregularities and naming two former federal ministers as co-defendants. With Adhikari suspended and the only other officer currently on leave, all work requiring an authorized officer’s signature, particularly land transfer and case-related matters, is currently suspended, severely impacting local service seekers.

Conflict Arises Over Dedicated Line Tariff Agreement Implementation

A conflict has emerged over the implementation of the agreement between the government (including the prime minister) and the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) regarding the disputed dedicated and trunk line electricity tariffs. The agreement had three points: depositing a certain amount as collateral/installment, restoring power to cut-off industries, and conducting a review. However, the Nepal Electricity Authority (NEA) Executive Director, Manoj Silwal, stated that the amount collected is revenue, not collateral, and will not be refunded unless ordered by a court or the Electricity Regulatory Commission. Silwal also explicitly stated the NEA will not conduct an administrative review, contradicting the industrialists’ interpretation and leaving eight industries still without power nine days later.

Over 600 Applications Received for Startup Enterprise Loan

The Industrial Enterprise Development Institute (IEDI) under the Ministry of Industry, Commerce, and Supplies has received 610 proposals for the Startup Enterprise Loan program as of Monday. The IEDI’s Executive Director, Umesh Gupta, noted that 592 applications were submitted online, with 18 registered in person. The deadline for application is December 9, 2025. The government has allocated Rs 730 million for the current fiscal year, aiming to provide loans to approximately 400 startup enterprises. The scheme, governed by the Startup Enterprise Loan Operation Procedure 2024, offers a maximum loan of Rs 2.5 million per entrepreneur at a 3% interest rate.

NRB Mandates Licensing for Casino Foreign Currency Exchange

Nepal Rastra Bank (NRB) has introduced a new provision requiring casinos and similar institutions to obtain a license before engaging in foreign currency exchange activities. The central bank issued a notice stating that the new arrangement aligns with Section 3 of the Foreign Exchange (Regulation) Act, 1962, which mandates licensing for foreign exchange transactions. The NRB notice clarifies that casinos must obtain permission to deal in foreign currency, including Indian currency. Furthermore, the NRB issued an integrated directive on payment systems, limiting transactions for debit, prepaid, and credit cards. Daily debit card transactions are now capped at Rs 50,000, while prepaid cards are limited to Rs 20,000 per day and Rs 200,000 monthly.

Construction Prohibited Along 400 kV Power Line Corridor

The government has prohibited the construction of structures and the planting of trees along the right-of-way corridor for the 400 kV electricity transmission line to be built by MCA-Nepal. The decision was announced by government spokesperson and Minister of Communication and Information Technology, Jagadish Kharel, following a Cabinet meeting on Monday. The prohibition covers approximately 1,381 hectares of land, spanning 23 meters on either side of the center line, in districts including Nawalparasi, Palpa, Tanahun, Chitwan, Dhading, Sindhupalchok, Kathmandu, Nuwakot, and Makwanpur. The Cabinet also approved a pre-sanction for an organizational and management survey of the Ministry of Energy and its subordinate bodies.

Nepal Airlines Adds Taplejung-Kathmandu Flight Schedule

Nepal Airlines Corporation (NAC) has increased its flight frequency to Suketar Airport in Taplejung, adding a second weekly flight on Mondays for the Taplejung-Kathmandu-Taplejung route. Previously, NAC operated this route only on Fridays. According to Station In-charge Narayan Kumar Karki, the additional flight was made possible after the corporation’s grounded aircraft were repaired and returned to service. The increased schedule, now operating two days a week (Friday and Monday), aims to meet growing passenger demand using NAC’s two operational Twin Otter aircraft. Although a proposal has been sent to the center to add a third weekly flight on Wednesdays, approval is still pending. The regular Monday flight was shifted to Tuesday due to a technical error.

Gold and Silver Prices Surge in Domestic Market

The price of gold in the domestic market has seen a significant increase of Rs 4,900 per tola (11.66 grams) today, Tuesday. According to the Federation of Nepal Gold and Silver Dealers Association, the price of gold is set at Rs 246,400 per tola today, up from Rs 241,500 on Monday. Similarly, the price of silver has also surged by Rs 105 per tola today. The price of silver is fixed at Rs 3,170 per tola today, increasing from Rs 3,065 per tola on Monday.