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 4.98 Points Trading Value at Rs 377.86 Million

The Nepal Stock Exchange (NEPSE) index recorded a marginal decline today, falling 4.98 points to close at 2,561.08. A total of 8,388,373 shares of 338 companies were exchanged in 50,626 transactions, amounting to Rs 377.86 million in total turnover. Only the Hotel & Tourism, Manufacturing & Processing, Mutual Fund, and Trading sectors showed gains. Barun Hydropower led the turnover chart with Rs 274.04 million worth of shares traded.

Liquidity Control: NRB Wipes Rs 50 Billion from Market

The Nepal Rastra Bank (NRB) is set to withdraw Rs 50 billion in excess liquidity from the financial system on Wednesday by issuing an 84-day deposit collection instrument. The central bank has recently increased its use of longer-term deposit instruments, having already used a Rs 50 billion instrument earlier this week. As of 2025-11-18, the financial system holds approximately Rs 79 billion in liquidity. The NRB utilizes tools like deposit collection and standing deposit facilities to manage interbank interest rates, which are currently guided by a 6% bank rate and a 2.75% standing deposit facility rate.

US Adds USD 50 Million in Grant Funding to MCC Nepal Compact

The governments of Nepal and the United States’ Millennium Challenge Corporation (MCC) announced an additional grant of USD 50 million (approximately Rs 7 billion) to the MCC Nepal Compact. This supplemental funding brings the total available grant to USD 747 million (approximately Rs 106 billion), which includes USD 550 million from the US and USD 197 million from Nepal. The new resource is intended to ensure the full completion of priority electricity transmission infrastructure, strengthen Nepal’s energy system reliability, and enhance regional energy trade and international connectivity. The aid is non-debt and grant-based, promoting US excellence and best practices.

Nepal Retains ‘BB–’ Sovereign Credit Rating for 2025 Despite Instability

International credit rating agency Fitch has maintained Nepal’s sovereign credit rating at BB Minus (BB–), the same score achieved during its first assessment. This score indicates satisfactory debt repayment capacity but signals inherent economic risk. The Fitch team, which visited from 2025-11-04 to 2025-11-06, expressed concern over political uncertainty but was satisfied with Nepal’s detailed presentation on economic reforms and its resilience during the COVID-19 pandemic and the 2015 earthquake. Fitch noted that the rating is supported by Nepal’s low internal and external debt burden, forecasting the federal government deficit at 3.5% of GDP for the current fiscal year.

Overseas Employment Surges 20.29% in First Four Months of FY

The number of Nepalis seeking foreign employment increased sharply by 20.29% in the first four months of the current fiscal year, with 273,805 individuals receiving labor permits. According to the Department of Foreign Employment, this is a jump of 46,190 compared to the 227,615 permits issued during the same period last year. The number of women obtaining permits rose by 13% to 33,815. Experts attribute the surge to decreased domestic job opportunities and high labor demand in destination countries, despite political issues like the temporary visa halt following the Gen Z movement.

Government Approves Relief Funds for 2,429 Gen Z Protesters

The Council of Ministers, meeting on Tuesday at the Office of the Prime Minister and Council of Ministers, approved relief funds of Rs 15,000 for each of the 2,429 individuals injured during the recent Gen Z protest. Communication and Information Technology Minister Jagdish Kharel announced the decision. The meeting also recommended that President Ram Chandra Paudel issue an ordinance to amend the Nepal Special Service Act, 1985. Furthermore, the government accepted additional grant assistance of approximately USD 5 million from the Government of Norway and Rs 281.4 million from the Government of Switzerland for governance support programs.

Task Force Finds State Employees Receive 41 Types of Allowances

A government task force study revealed that public institutions, including regulatory bodies and public corporations, are arbitrarily distributing high salaries and benefits to staff, including 41 types of allowances. The report noted that employees at the Employees Provident Fund and the Nepal Civil Aviation Authority received the highest average annual income, at Rs 2.22 million and Rs 2.06 million, respectively. The task force recommended mandatory consent from the Ministry of Finance for all decisions concerning financial liabilities and proposed creating a single framework for service terms and classifying institutions to streamline the current chaotic system of benefits.

Ministry Scrambles to Fund DAP Fertilizer for Paddy Season

The Ministry of Agriculture and Livestock Development is actively working to secure DAP fertilizer ahead of the upcoming summer paddy season, anticipating a shortfall of 60,000 metric tons. Although Rs 28.821 billion was allocated for fertilizer procurement in the current fiscal year 2025/26, the budget is insufficient due to rising international prices. The ministry is exploring options, including budget transfers from other programs or price adjustments, after the Ministry of Finance denied a request for an additional Rs 10 billion. Currently, Nepal has 105,259 metric tons of fertilizer in stock, with the purchase price of urea being Rs 64 per kilogram, subsidized down to Rs 15 for farmers.

Sudurpaschim Province Forecast to Contribute 7.03% to GDP

The Nepal Rastra Bank’s annual report on the economic activity of Sudurpaschim province for the fiscal year 2024/25 forecasts a 3.32% economic growth rate and a 7.03% contribution to the country’s Gross Domestic Product (GDP). The Agriculture, Forestry, and Fisheries sector is projected to be the largest contributor at 34.72%. The report indicates that the capacity utilization of surveyed industries is low at 34.47%. Total credit disbursed to the agriculture sector decreased by 3.41% to Rs 15.964 billion, while credit to the industry sector increased by 4.37% to Rs 26.720 billion as of July 15, 2025.

Koshi Province Industry Capacity Utilization Dips to 50.80%

The average capacity utilization of industries in Koshi Province decreased to 50.80% in the fiscal year 2024/25, down from 52.59% in the fiscal year 2023/24. The Tyre and Tube production sector recorded the highest utilization at 90.67%, while the Ghee (dairy) sector saw the lowest at only 4.37%. Production of soybean oil surged by 1,449% due to increased foreign market demand. Conversely, the production of domestic metal goods plummeted by 74.3% due to decreased demand and inability to compete on price with imported items. Koshi’s economic growth is preliminarily estimated at 3.34% for the period.

Lumbini Province Registers Dismal Budget Expenditure of 11.53% in Q1

The Lumbini Province recorded a disappointing total budget expenditure of only 11.53% in the first four months of the fiscal year 2025/26, comprising 9.53% capital expenditure and 14.28% recurrent expenditure. The province allocated a total budget of Rs 38.81 billion. The Ministry of Health reported the highest spending at 30.43%, followed by the Ministry of Industry, Tourism, and Transport at 15.14%. The Ministry of Youth and Sports has spent 4.78% of its recurrent budget but zero on capital expenditure, continuing the common end-of-year spending rush that often compromises work quality.

Karnali Province Electric Cable Industry Reaches 90% Capacity Utilization

A study of Nepal Rastra Bank reveals that Karnali Province’s electric wire and cable manufacturing industry is operating at near full capacity, reaching 90% utilization in the fiscal year 2024/25. This contrasts with the province’s overall industrial capacity utilization of 46.52%, with the carpet industry being the lowest at 23.08%. While overall agricultural cultivated land decreased by 6.08%, key strategic infrastructure projects like the Mid-Hill Highway and the Bheri Babai Diversion Project are gaining momentum, potentially driving positive economic activity in the current fiscal year.

Lumbini Industries Receives Rs 327.57 Billion in Investment

The Lumbini Province has attracted Rs 327.57 billion in investment across 756 large-scale industries registered with the Department of Industry as of July 15, 2025. These industries provide employment to 76,080 individuals across 12 districts. Rupandehi district holds the largest share of investment at 38.62% (Rs 103.74 billion). The report from Nepal Rastra Bank highlights that challenges like erratic power supply, lack of raw materials, and the emigration of skilled youth hinder industries from operating at full capacity.

KMC Revenue Surpasses Last Year’s Q1 Collection by Rs 5.65 Million

The Kathmandu Metropolitan City (KMC) collected Rs 3.224 billion in revenue during the first four months of the current fiscal year 2024/25, exceeding the Rs 3.167 billion collected during the same period last year. This represents an increase of Rs 56.5 million. However, internal revenue decreased by Rs 22.09 million, largely due to a dip in property tax collection, which fell from Rs 503.1 million to Rs 427.6 million. KMC Revenue Department Head Deepak Adhikari attributed the property tax decrease to adjustments made after a Supreme Court ruling shifted authority for rental tax collection back to the local government.

Ilam Tea Sector Suffers Rs 47.29 Million Loss from Landslides

Tea plantations in the Ilam district sustained damages exceeding Rs 47.29 million due to landslides following heavy rainfall last month on October 4. The Central Tea Cooperative Federation reported that the disaster destroyed the tea gardens of 97 farmers affiliated with 41 cooperatives. In the broader agricultural sector, the damage totaled Rs 273.995 million, affecting 3,400 farmers and 892 hectares of land. The district recorded 39 fatalities and 338 fully damaged homes. Despite Ilam being declared a crisis area for three months, no solid reconstruction work or relief grants have been allocated.

KMC Begins Construction of Sports Park, Costing Rs 28.14 Million

The Kathmandu Metropolitan City (KMC) today commenced the construction of a sports park on five ropani, 10 ana, and 2 paisa (2,880 square meters) of public land in Ward Number 10, Devinagar. The area, along the Dhobikhola Corridor, was previously encroached upon and cleared by the KMC Metropolitan Police Force on July 20, 2023. The park construction, managed by Hans-Chhapur Joint Venture with a cost of Rs 28.14 million, is scheduled for completion by October 4, 2025. It will feature a futsal ground, a badminton court, an open gym, and 311.89 square meters of green space.

Dang Livestock Budget Sharply Cut; Incentives Impeded

The Veterinary Hospital and Livestock Service Expert Center in Dang district has reported a consistent reduction in annual budgetary allocation, hindering efforts to attract new generations to livestock farming. The budget allocated by the Provincial Government was Rs 90.150 million in the fiscal year 2022/23, which sharply decreased to Rs 70.134 million in the fiscal year 2023/24. The current fiscal year 2025/26 budget has further plummeted to only Rs 32.807 million. Dr. Hari Narayan Prasad Tharu, Chief of the Center, confirmed that the overall budget reduction has also resulted in decreased grant funds for farmers.

Nawalparasi Flood Mitigation Masterplan Stalled by Low Budget

A master plan estimated to cost Rs 1.70 billion to mitigate the perennial flooding faced by residents in the Bhujhawa area of Nawalparasi (Bardaghat Susta Paschim) is imperiled at its inception due to insufficient government funding. The government allocated only Rs 10 million for the first year of the massive project, causing confusion among locals and technicians. Tilakram Budhathoki, Chief of the Nepal Gandak Western Canal Irrigation System Management Office, stated that at this rate of disbursement, completing the billion-rupee master plan could take years. The flooding is chiefly caused by the confluence of the high-density Jharahi stream and the low-density Dhanewa stream.

Surkhet-Dailekh 132 kV Line Delayed by Forest Clearance Issues

The Surkhet-Dailekh 132 kV transmission line project is delayed due to the lack of tree-cutting permission. Project Chief Ravi Chaudhary stated that only 40% of the work has been completed since the Rs 800 million contract was awarded to Sigma Kathmandu in the fiscal year 2023/2024. The project, which involves constructing 102 angle towers over 32 kilometers, should have been completed by mid-April 2026. Over 19,000 trees need to be felled, but the file is pending with the Ministry of Forests and Environment. Due to the delay, the project deadline has been extended by one year.

Rupandehi Trade Association Sees Multiple Nominations for Leadership

The Rupandehi Trade Association’s 24th Annual General Meeting and 13th Convention is set for Friday, with Prakash Dhakal and Dayanidhi Bhandari filing nominations for the presidency. The senior vice presidency post saw nominations from Parshuram Pant and Prem Nath Pandey. Uncontested nominations were filed for the positions of first vice president (Rishiram Pandey), general secretary (Prakash Paudel), treasurer (Arjun Bhattarai), women’s secretary (Brinda Bhattarai Acharya), and co-treasurer (Jeevan Narayan Ghimire). The election will be contested by 2,578 registered voters.

Foreigners Now Required to Pay USD 50 Per Day for Upper Mustang Trekking

The government has set the trekking permit fee for foreign nationals visiting the Upper Mustang area at USD 50 or equivalent foreign currency per person, per day. Government Spokesperson and Minister of Information and Communications Technology Jagdish Kharel announced the decision, which was passed by the Cabinet meeting on Tuesday. This decision amends Schedule 12 of the Immigration Regulations, 1994, establishing a fixed daily fee for foreign tourists wishing to trek in the restricted region of Upper Mustang.

Tourism Department Issues 12-Point Directive to Regulate Casinos

The Department of Tourism under the Ministry of Culture, Tourism, and Civil Aviation has issued a comprehensive 12-point directive to all operating casinos, emphasizing strict adherence to the Money Laundering Prevention Act and its provisions. The directive strictly prohibits casinos from conducting foreign currency exchange without a license from the Nepal Rastra Bank. Casinos are barred from operating via online platforms, required to update customer identification and biometric details, and must retain CCTV footage of all activities for at least six months. Furthermore, they must promptly deduct statutory withholding tax from player winnings.

Biratnagar Airport Terminal 75% Complete; Expected to Open in April 2026

The civil work for the new Biratnagar Airport terminal is 75% complete, with the facility expected to begin operations in April 2026, despite the contractor’s deadline being January 14, 2026. Engineer Sanjiv Khadka of the Civil Aviation Authority of Nepal confirmed that mechanical and architectural works remain. The terminal, costing Rs 2.42 billion (excluding VAT) and spanning 16,277 square meters, will be the largest domestic terminal in the country. It will have a capacity for 550 passengers and 17 check-in counters. The project’s completion is expected to allow for a 270-meter expansion of the existing 1,500-meter runway.

Chaudhary Group Contributed Rs 25.59 Billion in Taxes Last Fiscal Year

The Chaudhary Group (CG) contributed Rs 25.59 billion in taxes to the state last fiscal year, which constitutes approximately 2.3% of the nation’s total revenue. Nirvana Chaudhary, Managing Director of the Chaudhary Group, shared this information via social media after meeting with Finance Minister Rameshore Khanal. Chaudhary expressed pride that the group was able to strengthen the national treasury despite challenges. The Finance Minister specifically acknowledged the tax contribution of the CG Group of Companies, noting its significant contribution to the overall national revenue.

Citizens Capital and Himalayan Energy Sign IPO Management Deal

Citizens Capital and Himalayan Energy have signed an agreement appointing Citizens Capital as the issue manager for the initial public offering (IPO) of ordinary shares. Himalayan Energy is constructing the 3 MW Kalinchok Hydroelectric Project in Kalinchok Rural Municipality-1, Dolakha. The company’s General Assembly on October 27, 2024, resolved to issue 1 million shares, representing 20% of its paid-up capital of Rs 500 million, to the public. The agreement was signed by Himalayan Energy CEO Laxmi Bhattarai and Citizens Capital CEO Sabir Bade Shrestha.

Lumbini’s Capital Expenditure Remains Slow at 9.73% in Q1

Lumbini Province utilized only 9.73% of its capital expenditure budget in the first four months of the current fiscal year, spending Rs 2.28 billion out of the allocated Rs 23.47 billion. Recurrent expenditure was slightly better at 14.28%. Overall budget spending reached 11.53% of the total Rs 38.91 billion. The low capital spending includes disbursements for liabilities carried over from the previous year. The Ministry of Health demonstrated the highest capital spending at 63.33%, while several ministries, including Youth and Sports and Industry, Tourism, and Transport, recorded zero capital expenditure.

Syangja Multi-Year Projects Achieve 36% Financial Progress in Q1

The 15 multi-year, medium-scale projects in Syangja district, with a budget ceiling of up to Rs 50 million, achieved a cumulative 36% financial progress in the first four months of the current fiscal year. The Rs 367.72 million allocated for road, road bridge, and suspension bridge projects resulted in an expenditure of Rs 132.48 million. Road projects showed the best performance with 41% spending, whereas road bridge projects lagged at only 9%. Two suspension bridge projects were completed 100% within the four-month period, according to the Infrastructure Development Office, Syangja.

Daram Khola Hydroelectric Project Begins Commercial Production After 17-Year Delay

The Daram Khola Hydroelectric Project in Galakot, Baglung, has officially commenced commercial power production, nearly 17 years after its initial planning in the fiscal year 2008/2009. After years of administrative and financial setbacks, the project’s construction intensified in the fiscal year 2020/2021. Chairman Nar Bahadur Pun of Daram Khola Hydro Energy Private Limited confirmed that commercial supply began on 2025-11-16 (Sunday), with the plant currently generating 6.6 MW. The project, which cost over Rs 2 billion, connects to the Nepal Electricity Authority’s Harichaur substation 14 kilometers away.

Gold Price Jumps Rs 2,800 per Tola

The price of hallmark gold in the domestic market increased by Rs 2,800 per tola on Wednesday. According to the Federation of Nepal Gold and Silver Dealers’ Association, hallmark gold is priced at Rs 242,300 per tola, up from Rs 239,500 on Monday. Similarly, the price of silver increased by Rs 60 per tola to trade at Rs 3,150, compared to Rs 3,090 on Tuesday. This sharp rise reflects movement in the global market.