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 Closes Week with 1.13 Point Gain; Six Companies Hit 10 Percent Surge

The Nepal Stock Exchange (NEPSE) index closed the final trading day of the week with a marginal gain of 1.13 points, settling at 2545 points. The market saw high volatility, dipping to a low of 2530 points at 12:31 PM and peaking at 2559 points at 2:06 PM. Despite the slight increase, six companies, including Mabilung Energy and Shwetganga Hydropower, saw their share prices jump by 10 percent. Trading volume declined to Rs 3.49 billion from Rs 3.84 billion the previous day.

NRB to Revise Policy on Institutional Fixed Deposits Due to Lack of Interest

The Nepal Rastra Bank (NRB) is preparing to revise the policy governing institutional fixed deposits after commercial banks showed increasing reluctance to participate in the mandatory bidding process for these deposits. A senior NRB official indicated that the bidding process, which favored banks offering higher interest rates, worked well during liquidity shortages but is now counterproductive amid high liquidity. The planned policy revision will allow institutional depositors to place their funds in a bank of their choice without the need for bidding, similar to individual deposits, to prevent market complexity and discourage institutional depositors. Institutional deposits currently constitute 47.9 percent of the total Rs 7.505 trillion deposit base.

World Bank Forecasts Nepal’s Growth to Slow to 2.1 Percent in 2026

The World Bank’s latest Nepal Development Update, published on Thursday, projects that Nepal’s economic growth will slow sharply from 4.6 percent in 2025 to 2.1 percent in 2026. This slowdown is attributed mainly to the political instability following the September protests. Growth is anticipated to rebound to 4.7 percent in 2027 due to reconstruction efforts. Finance Minister Rameshore Prasad Khanal highlighted the government’s efforts, including the establishment of a Reconstruction Fund, to restore business confidence. The World Bank urged Nepal to strengthen public investment management to meet the country’s infrastructure needs.

IRD Informs Seven DTAA Nations About Changes to Tax Law

The Inland Revenue Department (IRD) officially informed seven nations, namely Norway, Thailand, Sri Lanka, Austria, Pakistan, China, and South Korea, with which Nepal holds a Double Taxation Avoidance Agreement (DTAA), about changes in domestic tax laws. The notification, issued on Wednesday, clarifies the implementation of the Income Tax Act, 2002, which replaced the Income Tax Act, 1974. The goal is to prevent tax evasion through “treaty shopping” by denying tax treaty benefits if 50 percent or more of an entity’s ownership is held by individuals or institutions from outside Nepal or the respective DTAA country.

NRB Orders 420 Million New Rs 50 Notes from China

The Nepal Rastra Bank (NRB) has contracted China Banknote Printing and Minting Corporation to design, print, and supply 420 million pieces of new Rs 50 denomination banknotes. The contract was awarded after a bidding process initiated on July 25. NRB stated that the Chinese company was selected for offering the lowest bid, and the agreement was finalized after completing procedures under the Public Procurement Act, 2007, and the Procurement Directive, 2010.

Madhesh Province Economy Grew by 3.88 Percent in FY 2024/25

The National Statistics Office estimates that the Madhesh Province economy grew by 3.88 percent during the Fiscal Year 2024/25, driven primarily by an increase in food grain and vegetable production. The province’s Gross Domestic Product (GDP) at consumer prices is estimated to have reached Rs 804 billion. The agriculture, forestry, and fishing sector provided the largest contribution to the GDP at 36.70 percent. Per capita income for the fiscal year is estimated to be USD 932.

Bagmati Province Loses 12,214 Tons of Paddy Due to Unseasonal Rain

Unseasonal rainfall last month caused by Cyclone Montha resulted in the destruction of 12,214.26 tons of paddy across 10 districts in Bagmati Province. According to Ministry of Agriculture Spokesperson Sujan Kandel, the loss is valued at an estimated Rs 222.4 million, affecting 5,465.35 hectares of farmland. The Ministry estimates that overall paddy production in the province will drop by 44,850 tons this year, decreasing the average productivity from 3.9 tons per hectare last year to 3.6 tons per hectare this year. The ministry has requested approval from the Ministry of Finance for an Rs 50 million relief package.

Karnali Province Allocates Rs 211.2 Million for Shey-Phoksundo Trekking Trail

The Karnali Provincial Government is investing Rs 211.2 million in infrastructure development to promote tourism at the Shey-Phoksundo Lake in Dolpa. Chief Minister Yam Lal Kandel laid the foundation stone for the Phoksundo Trekking Trail project, which runs from Sangta to Phoksundo. The project, supervised by the Karnali Province Ministry of Physical Infrastructure, includes building walkways, 16 waiting shelters every two kilometers, two truss bridges, and establishing a museum and park in the Ringibo settlement. The entire project is scheduled to be completed by 2027 to enhance the trekking experience for domestic and foreign tourists.

NEA Restores Power to 21 Industries

Nepal Electricity Authority (NEA) has restored electricity supply to 21 of the 25 industries that had their lines cut on October 21, after they paid their first installment of disputed premium fees. The 21 industries paid Rs 174.6 million out of their total outstanding Rs 4.943 billion. Jagdamba Steel Company, which had the highest individual outstanding amount, paid Rs 57.2 million on Wednesday. However, Jagdamba Synthetic, Everest Paper Mill, Nigale Cement, and Butwal Cement remain disconnected for failing to pay the initial installment. The NEA and industrialists still disagree on whether the payment is a deposit or the first installment.

Nepal Government Exempts MCC Contractors from Income Tax for Current FY

The government has exempted contractors working on the Millennium Challenge Corporation (MCC) project from paying income tax for the fiscal year 2025/26. The Ministry of Finance published a notice in the gazette to implement the decision made by the Cabinet under former Prime Minister KP Sharma Oli on August 3. The exemption applies to income earned from MCC funding by entities registered in Nepal as a branch or permanent establishment and is provided under the provisions of the Financial Act, 2025.

Nepal Airlines Starts Staff Reduction to Improve Financial Health

Nepal Airlines Corporation (NAC) has begun a staff reduction campaign aimed at improving operational efficiency and reducing financial burden. Following an instruction from Prime Minister Sushila Karki to remove contract employees recruited through political access, NAC management canceled the service contracts of six employees, one contract-based and five on a monthly wage basis, in the first phase. NAC Spokesperson Anil Ghimire stated that the initiative is part of a management reform and cost-cutting policy. NAC also confirmed that both of its Twin Otter aircraft are now fully operational, having returned to regular service after maintenance.

Development Banks’ Non-Performing Loans Surge to 5.74 Percent Average

The average Non-Performing Loan (NPL) ratio for national-level development banks soared to 5.74 percent in the first quarter of the current fiscal year, up from 4.08 percent in the same period last year, according to their financial reports. Jyoti Development Bank recorded the highest NPL at 7.97 percent, followed by Lumbini Bikash Bank at 7.78 percent. The sluggish economy, slow loan collection, and the impact of the September 8 and 9 Gen Z protests contributed to the rise. Furthermore, the net profit of these banks collectively plummeted to Rs 535.5 million in Q1, down from Rs 1.170 billion last year.

Physical Infrastructure Reconstruction Fund Allocates Rs 75 million for Damage

The Physical Infrastructure Reconstruction Fund, established to address damages from the September 8 and 9 Gen Z protests, has accumulated Rs 75.2 million. The Physical Reconstruction Committee, chaired by Finance Minister Rameshore Khanal, approved the allocation of the funds on Monday. At least Rs 35 million was assigned for detailed engineering design and reconstruction reports of damaged government structures nationwide. An additional Rs 30 million was allocated for the immediate repair of public infrastructure to resume services, with the remaining Rs 5 million for economic rehabilitation and relief programs.

All Industries with Premium Fees Resume Electricity Supply

The Nepal Electricity Authority (NEA) has restored electricity supply to all industries that had their lines cut due to unpaid premium fees for dedicated and trunk lines. According to NEA Spokesperson Rajan Dhakal, supply was normalized after the industries paid the first installment of the 28 total installments determined by the NEA. Currently, no industry faces a power cut solely due to this premium fee dispute, although three industries remain disconnected for failure to pay regular outstanding fees. NEA Executive Director Manoj Silwal stated that while supply is restored, industrial clients are free to seek judicial remedy from the Electricity Regulatory Commission or the courts.

Bharatpur Tax Office Pursues Defaulters and Launches Compliance Campaign

The Inland Revenue Office (IRO), Bharatpur, has begun directly contacting non-compliant taxpayers who failed to submit income details for the last fiscal year, citing that about 50 percent of mandated taxpayers are defaulters. IRO Chief Punya Bikram Khadka announced a public awareness campaign from November 17 to 21. The office reported collecting Rs 5.510 billion against a target of Rs 5.650 billion by mid-October of the current fiscal year. Khadka stated that the office is initiating legal action, including claiming immovable property, against over 5,000 taxpayers who owe approximately Rs 1.550 billion in back taxes.

Salyan Farmers Produce Rs 1.714 Billion Worth of Potatoes in FY 2081/82

Salyan district produced 52,351 metric tons of potatoes, valued at Rs 1.714 billion, in the last fiscal year, 2024/25, through both monsoon and winter farming. The cultivation spanned 4,435 hectares. Information Officer Chiranjibi Shrestha reported that 8,864 metric tons of potatoes were exported outside the district to markets including Pokhara, Kathmandu, and Nepalgunj, earning farmers a direct income of Rs 290 million. The remaining production was consumed within the district, highlighting the growing commercialization of potato farming in Salyan.

Resunga Airport Resumes Four Weekly Flights with Twin Otter

Resunga Airport has resumed four weekly flights, starting Thursday, after the repair of the Nepal Airlines Corporation’s (NAC) Twin Otter aircraft. For the past five months, services had been limited to just one flight every Thursday. According to Suman Thapa, NAC Resunga Station Chief, the 19-seater Twin Otter will now operate on Sunday, Tuesday, Thursday, and Saturday. Flights are scheduled for early morning due to high wind pressure later in the day, with fares set at Rs 7,500 from Kathmandu to Gulmi and Rs 7,300 for the return trip.

Pokhara Promotes Skydiving as Key Adventure Tourism Draw

Skydiving is currently underway in Pokhara, continuing its operation as a key part of the city’s ‘Nature, Culture, and Adventure’ tourism strategy. Insky Skydive Company is conducting the dives from 13,000 feet at the Avia Club ground in Pame, Laurak, in coordination with Simrik Air. Operator Nirmal Pande noted that 52 foreigners and Nepalis are scheduled to participate this season, which began on November 1 and runs until Saturday. The company is urging the Civil Aviation Authority of Nepal (CAAN) to grant a regular Recreational Aviation Operating Certificate (RAOC) instead of the current 15-day periodic permits to ensure sustainable tourism growth.

Kumari Bank Passes FY 2024/25 Financials; No Dividend Declared

Kumari Bank approved its financial statements for the fiscal year 2024/25 during a Board of Directors meeting held on Wednesday evening and decided to submit the report to the Nepal Rastra Bank (NRB) for approval. The board also resolved not to distribute any dividend to its shareholders for the period. Kumari Bank’s paid-up capital stands at Rs 26.225 billion. The bank is yet to announce the date for its Annual General Meeting.

Portuguese Embassy Warns Nepalis Against Worker Visa Scams

The Nepali Embassy in Portugal has issued a warning to Nepalis in Nepal and various Middle Eastern countries to be cautious of scams related to worker visas. The embassy stated that the Portuguese government has stopped issuing all types of worker visas, except for highly skilled ones, effective October 23. The embassy has received reports of fraud in the name of arranging work in Portugal and advised against engaging in or being part of such illegal activities. It emphasized that individuals will not be permitted to enter Portugal using such non-existent visas.

Gold Price Surges by Rs 5,900 to Cross Rs 250,000 Per Tola

The price of gold has soared again, with the Federation of Nepal Gold and Silver Dealers’ Association setting the rate at Rs 250,200 per tola for Thursday. This marks a sharp single-day increase of Rs 5,900 from the previous day’s trading price of Rs 244,300. The surge follows a rise in the international market, where gold crossed USD 4200 per ounce. Silver prices also increased by Rs 170 per tola, reaching Rs 3,345.