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 Drops 5.15 Points; Rs 3.89 Billion Turnover Recorded

On the first trading day of the week, Sunday, the Nepal Stock Exchange (NEPSE) index closed at 2540 points, dropping by 5.15 points from the previous day. The market remained largely volatile throughout the day, briefly touching a low of 2533 points. Trading volume saw a marginal increase, rising to Rs 3.89 billion from Rs 3.49 billion the day before. While three sectoral indices (Hotel & Tourism, Manufacturing & Processing, and Others) saw minor gains, the majority of groups, including Banking and Development Bank, saw a decline. Three recently listed companies (Sagar Distillery, Bungel Hydropower, and Bandipur Cable Car) saw their share prices climb by 10%.

NRB to Absorb Rs 50 Billion in Excess Liquidity

The Nepal Rastra Bank (NRB) is set to mop up Rs 50 billion in excess liquidity from the banking system by issuing an 84-day deposit collection instrument on Sunday. This move is part of the central bank’s increasing use of long-term instruments to manage financial system liquidity. Just last Wednesday, the NRB absorbed Rs 21.45 billion for a 175-day period. The latest action addresses the system’s current high liquidity, which stood at approximately Rs 62 billion as of Saturday. The deposit collection rate is capped by the lower limit of the interest rate corridor (2.75%).

Nepal Classifies Trekking Routes by Altitude and Duration

The Ministry of Culture, Tourism, and Civil Aviation has published the ‘Trekking Route Standards Guideline, 2025,’ formally classifying Nepal’s trekking trails for the first time to promote tourism development. The classification includes hiking (minimum 5 km, completed within a day), easy trekking (over a day, up to 3,000 meters altitude), and adventurous trekking (over a day, above 3,000 meters). The guidelines mandate that routes, which must be a minimum of 5 km long, must be delineated to conserve local heritage and avoid vehicular roads. The government level responsible for development ranges from local (hiking) to federal (adventurous).

Commercial Bank Deposit Rates Subside Further

The average maximum interest rate on individual fixed deposits offered by 20 commercial banks has decreased by 0.160 percentage points for next month compared to mid-October to mid-November. The average maximum rate now stands at 5.0405%, down from 5.2005% in mid-October to mid-November. Ten banks, including NIC Asia, Prime Commercial, and Standard Chartered, lowered their rates, while ten others maintained them. Global IME Bank set the highest individual fixed deposit rate at 6% for three years or more. This rate reduction is due to sufficient liquidity and low credit demand, which is expected to subsequently reduce the base rate and lending rates.

Nabil Bank Debenture Worth Rs 3 Billion Listed on NEPSE

Nabil Bank’s “7% Nabil Debenture 2089,” worth Rs 3 billion, has been officially listed on the Nepal Stock Exchange (NEPSE). The debenture, with a tenure of eight years and an annual interest rate of 7%, consists of 3 million units at a face value of Rs 1,000 each. The secondary market trading for the debenture commenced on Thursday. The listing agreement was signed by Nabil Bank CEO Manoj Gyawali and NEPSE CEO Chudamani Chapagain. Nabil Investment Banking Limited will serve as the debenture registrar.

Foreign Exchange Reserves Near Rs 30 Trillion Mark

Nepal’s foreign exchange (forex) reserves have reached Rs 29.79 trillion by the end of mid-October, nearing the Rs 30 trillion milestone. According to the Nepal Rastra Bank (NRB), this is an 11.3% increase from the Rs 26.77 trillion recorded at the end of mid-July. In USD terms, the reserves grew by 8.7% to USD 21.21 billion from USD 19.50 billion. The current reserves are sufficient to cover 19.9 months of merchandise imports and 16.4 months of merchandise and services imports, reflecting the financial system’s stability.

Remittance Inflows Surge by 35% to Rs 553 Billion

Nepal received Rs 553 billion in remittance inflows during the first three months of the current fiscal year, a significant 35% increase compared to the Rs 408 billion received in the same period last year. This marks the 32nd consecutive month of monthly remittances exceeding Rs 100 billion. The growth in remittances is partly attributed to a 17% increase in the number of workers securing new or renewed labor permits, with 200,700 individuals receiving approval compared to 170,000 last year. Conversely, the outflow of remittances also nearly doubled to Rs 3.76 billion from Rs 1.82 billion in the previous period.

Commercial Banks’ Earnings Erode Amid Persistent Economic Sluggishness

The slowdown in the economy has directly impacted commercial banks, leading to a significant drop in profitability and a surge in non-performing loans. The average Earnings Per Share (EPS) of commercial banks shrank to Rs 14.45 by mid-October, a decrease of Rs 5.29 compared to mid-July, when it stood at Rs 19.44. The banks collectively reported a net profit of Rs 13.14 billion for the first quarter, representing an 18.47% decline from the Rs 16.12 billion earned during the same period last fiscal year. This slump reflects the economic instability exacerbated by the violent protests on September 9.

Nepal Bank Commemorates 89th Anniversary, Emphasizes Digital Evolution

Nepal Bank Limited (NBL), Nepal’s oldest commercial bank, formally entered its 89th year on Sunday, marking its establishment in 1937. Initially founded to phase out the Indian rupee’s influence, the bank’s journey has evolved from ledger books and metal tokens to full digital banking. CEO Tilak Raj Pandey highlighted the bank’s strong financial health, including a net profit of Rs 3.77 billion in the last fiscal year. With a network of 231 branches across 71 districts, NBL manages Rs 342 billion in deposits and Rs 236 billion in credit.

Annual Inflation Confined to 1.47% as Food Prices See Negative Growth

The annual point-to-point consumer price inflation was limited to 1.47% by the end of mid-October. According to the Nepal Rastra Bank, the price index for the Food and Beverage group showed a negative growth of 2.54%, indicating a decrease in kitchen expenses. However, the Non-Food and Service group experienced inflation of 3.80%. Regionally, inflation varied, with Koshi Province recording the highest at 2.33% and Sudurpaschim the lowest at 0.69%. The low overall inflation rate is often seen as a signal of a slow economy.

Sarbottam Cement Declares 20% Dividend

The Sarbottam Cement announced a total dividend of 20% for its shareholders, comprising a 5% bonus share and 15% cash dividend (including tax), amounting to Rs 995.1 million. The company’s Board of Directors also approved the resignation of current Chief Executive Officer (CEO) Santosh KC. Concurrently, the company released its first-quarter financial results, showing net profit soaring to Rs 324.2 million, reversing a Rs 22.5 million loss from the same period last year. Sales revenue also saw a significant 35% increase, and the annualized earnings per share.

Himalayan Reinsurance Q1 Profit Up 8.6%

Himalayan Reinsurance reported an 8.6% increase in net profit for the first quarter of the current fiscal year, reaching Rs 245.8 million. This figure is up from Rs 226.3 million reported during the same period last fiscal year. The growth was primarily supported by a 9.3% rise in net premium income, which reached Rs 1.1 billion. However, income from investments decreased to Rs 233.9 million, down from Rs 312.1 million. Despite this, the annualized Earnings Per Share (EPS) saw an improvement, rising from Rs 8.71 to Rs 9.05.

Shangrila Development Bank Declares 10.3583% Total Dividend

The Shangrila Development Bank Board of Directors has announced a total dividend of 10.3583% for its shareholders. The proposed dividend includes a 5% bonus share and a 5.3583% cash dividend (including tax). The total amount allocated for the dividend stands at Rs 368.3 million. The distribution of this dividend is contingent upon approval from the Nepal Rastra Bank and the bank’s upcoming Annual General Meeting (AGM).

Government Contemplates Fertilizer Price Adjustment Due to International Spike

The Ministry of Agriculture and Livestock Development (MoALD) is preparing to adjust the domestic price of chemical fertilizer due to rising costs in the international market. MoALD Secretary Dr. Govinda Sharma informed Finance Minister Rameshore Khanal on Friday that the Rs 28.82 billion allocated in the current fiscal year 2024/25 budget to purchase 600,000 metric tons is now insufficient. The budget has already been exhausted procuring 471,000 metric tons. International prices for urea, DAP, and potash have surged by 20% to 25% over the past year, necessitating budget management for an additional 146,000 metric tons.

Land Use Regulation Amended for Land Bank and Plot Size Limit

The government has issued the Land Use (Third Amendment) Regulation, 2025, modifying the Land Use Regulation, 2022. A pivotal provision introduces the “Land Bank” concept to bring long-term barren land into production, managed by local-level committees. Furthermore, to curb disorganized fragmentation, the amendment mandates a minimum plot size of 130 square meters (approximately 4 Aana) for residential and commercial land subdivision, although exceptions are allowed for total ownership area. Land acquired for infrastructure projects, such as electric transmission line right-of-way, can still be segmented upon providing compensation as per the law.

Saptari Industrialists Protest Tax Office Relocation

Industrialists and business professionals in Saptari staged a sit-in protest outside the Saptari District Administration Office on Sunday, opposing the decision to relocate the Rajbiraj Taxpayer Service Office. The protest, which began on November 8, followed the submission of a petition with over 5,000 signatures to Prime Minister Sushila Karki via Chief District Officer Tuwa Raj Pokharel. Saptari Chamber of Commerce and Industry General Secretary Amrit Sancheti argued that relocating the office would severely inconvenience the over 70,000 taxpayers in the district and subsequently hinder effective revenue collection efforts.

DOR Moves to Cancel 229 Stalled Project Contracts

The Department of Roads (DOR) is moving to terminate 229 stalled contracts for roads and bridges, classified as “sick” projects, some dating back to 2011. The DOR and various divisional offices have issued 15-day public notices demanding contractors provide reasons for non-completion. Kathmandu Road Division alone accounts for the largest share with 57 sick contracts, followed by Tumlingtar with 17 and Doti with 15. Similarly, the Department of Urban Development is terminating 37 of its 42 sick building and road contracts. While some contractors have since committed to work, the DOR intends to legally terminate those contracts lacking a satisfactory response or progress, moving to forfeit bank guarantees and blacklisting the firms.

Copper Mine Exploration Begins in Machhim, Dhaulagiri

A company named ‘M/S Dongyi Minerals’ Pvt. Ltd. has begun exploration and study for the excavation of a copper mine in Dhaulagiri Rural Municipality-7. The mine, which was active until 1971, has been closed for over five decades. A team of geologists is currently inspecting the site to identify the concentration of copper and discussed building an access road to the mining area. The local community, historically the Chhantyal people whose traditional profession is mining, has expressed happiness over the initiative but emphasized the need for environmental caution and prioritization of local employment.

Government Mandates Local Bodies to Tally Gen-Z Protest Damages

The Ministry of Federal Affairs and General Administration has issued a directive to all 753 local units, both municipalities and rural municipalities, to submit detailed records of the damages caused by the Gen Z protests on September 8 and 9. The local authorities were asked to enter the damage details on a dedicated online portal created by a five-member committee, established by a Cabinet decision on September 21, to assess the destruction of public, physical, and private property. The data is essential for the government to prepare the necessary reconstruction and rehabilitation plans.

Consumer Price Inflation Drops to 1.47% in Mid-October

The Nepal Rastra Bank (NRB) data reveals that the average monthly consumer price inflation stood at 1.47% in mid-October, a significant drop from the 4.82% recorded during the same month last year. The average inflation rate for the first three months of the current fiscal year 2025/26 is 1.67%, substantially lower than the 4.26% of the previous fiscal year, aligning with the NRB’s target of keeping inflation within the 5% limit. While food items like ghee and oil saw the highest price increase (7.75%), prices for vegetables (15.67%), spices (7.82%), and pulses (4.41%) recorded a decline.

Nepal Telecom Announces Waiver of Penalties on Outstanding Dues

Nepal Telecom has announced a full waiver of penalties on outstanding dues for customers who settle their accounts for the fiscal year 2022/23 and prior years. According to a notice issued on Sunday, customers must make the payment by the end of February 12, 2026, to take advantage of the relief. The company urged all eligible customers to visit the nearest Nepal Telecom office to utilize this scheme. Failure to pay within the specified deadline will result in the customer’s name being publicly listed and blacklisted on the company’s website.

Gharchhong Ring Road Achieves 93% Completion After Six-Year Delay

The 10.5-kilometer ring road connecting Thak-Panchgaun in Gharphajhong Rural Municipality, Mustang, is nearing its final construction phase, six years after the initial contract was signed in July 2019. The project, under the Gandaki Province’s ‘One Constituency, One Road’ plan, faced severe delays due to the construction company, Bandana Bhagawati Construction Service, which received seven extensions citing the pandemic and adverse weather. Physical progress has reached 93%, and financial progress is 88% against a total cost of Rs 244.5 million. The completed road is expected to significantly ease the transport of apples and other agricultural products for local farmers.

Dolpa-Jumla Road Upgrade Begins with Rs 259.9 Million Investment

The upgrade of the Tripurakot-Maure Road connecting Dolpa’s Tripurakot Municipality with Jumla’s Maure region has commenced, with an allocated budget exceeding Rs 259.9 million. Minister of Physical Infrastructure and Urban Development Sher Bahadur Budha confirmed the project, noting the 68-kilometer road is part of a multi-year plan connecting Tripurakot, Chhal, Kaigaun, Maure Lek, and Jumla to Mugu’s Rara Lake. The upgrade is anticipated to significantly boost tourism by linking major destinations like Rara and Shey-Phoksundo Lakes, enhancing economic opportunities for local residents. The construction company has a two-year deadline for completion.

Dang, Beekeepers Achieve Rs 1.6 Million Annual Turnover

Commercial beekeeping is flourishing in Dang due to its favorable climate, with over 500 farmers now involved. The sector demonstrates high profitability; for instance, operations maintaining approximately 150 hives generate an annual turnover of Rs 1.6 million, with an annual saving of Rs 700,000 from the sale of seven metric tons of honey. Other successful operations manage around 100 hives to produce 35 quintals of honey yearly, with some operators also manufacturing beekeeping infrastructure. The high earning potential is evidenced by established beekeeping ventures earning over Rs 100,000 monthly from approximately 105 hives.

Gold and Silver Prices Record Significant Drop in Local Market

Gold and silver prices in the local market experienced a notable decline on Friday and Sunday. The price of gold fell by Rs 6,900 per tola, trading at Rs 242,800 per tola on Sunday, down from Rs 249,700 on Tuesday. Similarly, silver prices dropped from Rs 3,285 per tola on Friday to Rs 3,135 per tola on Sunday. The figures were reported by the Federation of Nepal Gold and Silver Dealers’ Association.